State Bank of India cuts home loan rate
State Bank of India has a special offer for home loan seekers. Home buyers will now have to pay only 8% interest for a loan taken from the bank.
The new rate will be offered between Feb.2 and April 30, 2009, the bank said in a statement.
SBI had previously charged 9.75 percent on a floating basis for home loans, and 11.25-12.25 percent on a fixed basis.
Under a special scheme announced in December, it rolled rates back to 8.5-9.25 percent for loans up to 2 million Indian rupees ($41,000).
However, this facility would be available to the extent of 10 per cent of their home loans but up to a maximum of Rs. 5 lakh, an SBI release says.
The new scheme of eight per cent interest rate will be offered for loans taken during February 2 and April 30, the release says.
The bank would reset the interest rate after the freeze period to the same rate as originally applicable under the the respective schemes, the release adds.
The bank’s existing borrowers under the two home loan schemes — loans up to Rs. 5 lakh and Rs. 5-20-lakh bracket — would also be given loans at eight per cent for one year.
Here as well, after the freeze period the originally contracted rate will be applicable, the release says.
Private sector banks charge between 9.75 percent and 12.50 percent interest on home loans.