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SBI cuts home loan rate by 25 bps to 8.35 pc for credits up to Rs 30 lakh

India TV Business Desk New Delhi 08 May 2017, 15:38:33
India TV Business Desk

Country's largest lender State Bank of India (SBI) today slashed the rates for low-cost home loans under Rs 30 lakh by 0.25 per cent to 8.35 per cent. 

The new rate will be effective from tomorrow, the bank said, adding that eligible borrowers can also avail an interest subsidy of Rs 2.67 lakh under ‘Pradhan Mantri Awas Yojana’.

At present, the SBI’s interest rate is the lowest rate in the market. 

The bank also reduced its term deposit rates by up to 50 basis points for amounts below Rs 1 crore with maturity period ranging from two to 10 years.

For deposits of two to three years, the interest rate has been reduced by 50 bps from 6.75 per cent to 6.25 per cent. For senior citizens, the term deposit rate for the similar period has been reduced from 7.25 per cent to 6.75 per cent. 

The new term deposit rates have come into effect from April 29. 

For term deposits of three to 10 years, the rates have been reduced by 25 bps from 6.50 to 6.25 per cent. For senior citizens, the term deposit rate for the similar period has been reduced from 7 per cent to 6.75 per cent.

SBI offers highest deposit rate of 6.90 per cent for the term of one year to 455 days.

Meanwhile, the term deposit rates for less than two-year period have been left unchanged.