SBI mortgage rate cut: SBI lowers mortgage interest rate to 6.7%, waives processing fees and encourages non-salaried borrowers
“The offer translates into a saving of 45 basis points which translates into a huge interest savings of over Rs. 8 lac, for a Rs. 75 lac loan with a term of 30 years,” said the Press release.
In addition, the interest rate applicable to a self-employed borrower was 15 basis points higher than the interest rate applicable to a salaried borrower. The SBI said it has removed this distinction between a salaried borrower and a non-salaried borrower. “Now no occupancy interest premium is charged to potential mortgage borrowers. This would result in an additional 15 basis point interest savings for non-employee borrowers,” the bank said.
The lender has also waived the processing fee completely and will offer an interest reduction based on the borrower’s credit rating.
“This time, we have made the offers more inclusive and the offers are accessible to all segments of borrowers regardless of the amount of the loan and the profession of the borrower. The mortgage offer at 6.70% is also applicable to balance transfer cases. We believe zero processing fees and preferential interest rates during the holiday season will make home ownership more affordable, ”said CS Setty, Managing Director (Retail & Digital Banking), SBI.
“The latest research from ANAROCK reveals that the highest demand is currently in the high end segment, where properties are priced at Rs 80 lakh and above. This is mainly the result of the fact that houses now serve as offices and online learning centers. which cities will benefit – in previous concessional rates limited to low-cost housing, only tier 2 and tier 3 cities. With this democratized interest rate, SBI is also responding to the huge demand for housing in subways. This decision is timely, coinciding with the start of the holiday season. This year, we are likely to see a significant improvement in traction in the housing segment during this period. The waiver of processing fees and the occupancy interest premium are additional levels of savings. the most attractive offer ever offered by a home loan lender and it is reasonable to expect that other lenders will follow in SBI’s footsteps in order to remain competitive, ”said Anuj Puri, group chairman ANAROCK.
The bank also cut its base rate and prime rate. According to the SBI website, as of September 15, 2021, SBI’s base rate will be 7.45% and its prime rate will be 12.2%.