Home loans from SBI get cheaper

MUMBAI: Home loans have become cheaper with SBI reducing its benchmark one-year marginal cost-based lending rate ( MCLR) to 9.15%. Following the cut, women borrowers can avail home loans at 9.35% and others at 9.4% as against the earlier 9.4% and 9.45% respectively.

A statement issued by the bank said that following the cut, the EMI on a 30-year Rs 1-lakh loan would be Rs 830 for a woman borrower and Rs 834 for others.

The bank has also revised rates on a host of other personal loans, including car loans, following a revision in the benchmark rates.

The reduction in the home loan rates places SBI in a competitive position vis-à-vis other lenders, including the largest housing finance company HDFC. In a quiet move in April, HDFC had matched SBI's rate by offering loans at 9.4% to women and 9.45% to others. Keki Mistry, VC and chief executive officer, HDFC, said that the cost of funds had come down in April as compared to February and March.

“Reviewing rates is a constant process but it is not that we are doing a review today or tomorrow,“ said Mistry.