SBI that is State Bank of India has slashed the rate of interests for the Home loans and the Auto Loans recently. As per the sources and media reports, SBI has announced that it is going to cut the interest rates on both Auto and Home loans by 5 basis points. According to the new interest rate list issued by SBI, the home loan interest rate has been dropped to 8.30 percent per annum and the auto loan has slashed to 9.20 percent per annum.
SBI New Home Loan Interest Rate Becomes the Lowest Home Loan Interest Rate in the Market
The news from SBI, that it is slashing the interest rates for the home loans and auto loans has come as a relief to all the customers. This news has become one of the biggest news in the Market. According to the recent updates and media reports, these new SBI interest rates are now implemented. These new interest rates of SBI Home Loan and Auto Loan are implemented on 1st November 2017. After 1st November that is after the implementation of the new SBI interest rates, SBI has become one of the only bank offering the lowest interest rate on home loans and auto loans.
According to the state banking norms, bank charges a spread of 40 basis points on its MCLR [Marginal Costs Lending Rate] for Home Loan. Also, the Salaried women borrowers have to pay 35 basis points over and above the MCLR in regards to the home loan. According to the reports, one-year MCLR rate stands at 7.95 percent rather than 8 percent that was implemented before. According to the new policies, car loans cover for the MCLR is 1.25 percent. Now, the lending rate for the auto loans stands reduced to 9.2 percent from 9.25 percent that was before. Also, according to the new loan policies by SBI, the interest rate for the women loan borrowers is set at 9.15 percent due to the lower spread in MCLR applicable to them.
It has been more than a year that banks have started to follow MCLR as a benchmark for lending rate for the new borrowers across all the floating loans in the market.
According to the recent updates, internal groups that are set up by the Central Bank has put forth the recommendation for the replacement of the MCLR with the external benchmark for the purpose of determining the rates of interest on the loans.
After the cut of the interest rate by SBI, SBI has become ‘the bank’ offering the lowest interest rate on the Home Loans.
Source – Business Today