SBI to offer uniform interest rate on home loans from August 26

NEW DELHI: State Bank of India, country's largest public bank on Tuesday revised interest rates on home loans. The bank will offer uniform interest rate on home loans from August 26, irrespective of the loan amount you borrow.

Earlier, the interest rate for home loans of up to Rs 75 lakh was 10.10% pa for women borrowers and 10.15% pa for others, where as, the interest rates for home loans of above Rs 75 lakh was 10.25% for women and 10.30% for others.

In the new uniform rate system, women can borrow at a flat rate of 10.10% per annum and others at 10.15% per annum.



Meanwhile, to encourage affordable housing, the government is planning a new interest subvention scheme, which will meet part of the buyer's home loan burden.

Finance secretary G S Sandhu recently said that the government would shortly announce enhanced subvention for affordable home loans. He said that under the scheme, there would be interest subvention up to 5% for loans up to Rs 5 lakh. At present, the interest subvention is available on loans up to Rs 1 lakh.

Sandhu said that the new government had big plans and vision for affordable housing. "A blueprint on affordable housing plan is being prepared and the government is clear that its wants time-bound results," said Sandhu. He said most of the burden falls on public sector banks and real estate investment trusts could be a game-changer for the sector.

"Increasing the loan limit to Rs 5 lakh will vastly increase the utility of such loans. This will enable the underprivileged to take advantage of low-cost housing schemes that will be undertaken by state governments," said a senior official with a public sector bank.

Interest subvention refers to the subsidy that the borrower gets from the government, which makes good the discount given by the lender.

(With inputs from TNN)