We at Sumadhura wish to share this good news! It is the first time in 17 years that home loan interest rates have fallen below 8%. The State Bank of India is offering home loans at 7.95% interest rate (floating), effective from January 1, 2020. Previously, in 2003, the home loan interest rates were offered at 7.75%.
This indeed is great news for all of us! Why? One, your aspiration to own a home becomes easy, with a reduced burden on your monthly EMI. Two, our aspiration to build your world comes true. For 20 years we have strived to bring you your own homes, with highest quality standards at competitive prices.
SBI is the first bank in the country to link its loan lending rate with an external benchmark, which is Reserve Bank of India’s repo rate. The loan interest rates linked with repo rate is called as Repo Linked Lending Rate (RLLR). SBI terms it as External Benchmark Rate (EBR).
One important thing to note is that these interest rates are not just based on EBR but there are other factors also. Some common factors affecting interest rates are gender, age of the borrower, employment status, loan amount, loan repayment tenure and most importantly the risk profile of the borrower. Usually, banks charge a premium over loan interest rates to cover these risks.
Apart from 7.95% (premium of 15 bps) interest rate for Rs.30 lakhs loan, SBI is offering 8.2% (premium of 40 bps) as the interest rate on home loans of Rs 30 lakhs to Rs. 75 lakhs. Home loans above Rs.75 lakhs will be levied 8.3% (premium of 50 bps) interest rate.
|Home Loan Intrest Rate Card Structure (Floating):||EBR: 7.80%|
|Upto Rs 30 Lacs||EBR + 15bps
(ER: Effective Rate)
|EBR + 40 bps
|About Rs 30 Lacs to Rs 75 Lacs||EBR + 40 bps
|EBR + 40 bps
|Above Rs 75 Lacs||EBR + 50 bps
|EBR + 75 bps
Furthermore, other profile parameters of the borrower facilitate SBI to decide on loan interest rates and they are:
- For un-salaried borrowers, a premium of 0.15% will be added to the interest rate.
- For loan amounts up to Rs. 30 lakhs, if LTV ratio is more than 80% but less than 90%, a premium of 0.10% will be added to the interest rate.
- For borrowers falling under the risk group of 4 to 6, a premium of 0.10% will be added to the interest rate.
- For women borrowers, 0.50 bps concession will be provided on the interest rate.
Hope you got an understanding of how your investments now, with reduced burden, could yield better returns!
And be assured that at Sumadhura, we are looking at ways and means to empower you with the latest information and further handhold you to take you to your dream home!
For, we dwell on our customer’s aspirations and internalize it to get the best out of us. 20 years and we believe in homes, everyday! For YOU!
Homes you don’t want to leave!
*Brought to you by Sumadhura Infracon as an educational initiative.