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MUMBAI : State Bank of India (SBI) on Thursday said it will charge home loan borrowers an interest of 6.7% based on their credit score, irrespective of the amount.

This is part of SBI’s festive season offers in a bid to nudge demand and push credit growth. Till now, borrowers with home loans over 75 lakh had to pay an interest rate of 7.15%, while others paid less.

Since 1 May, the bank’s home loan rate for borrowers up to 30 lakh was 6.8% and for those taking loans above 30 lakh and up to 75 lakh, the rate was 7.05%, according to the bank website.

The offer results in a saving of 45 basis points (bps), translating into interest savings of more than 8 lakh on a 75 lakh loan over 30 years.

That apart, the rate of interest applicable to non-salaried borrowers was 15bps higher than the interest rate applicable to a salaried borrower.

The bank on Thursday said it has removed this distinction between a salaried and a non-salaried borrower and there is no occupation-linked interest premium being charged to prospective home loan borrowers. It has also waived off processing fees completely.

“Generally, the concessional interest rates are applicable for a loan up to a certain limit. This time, we have made the offers more inclusive, and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower," said C.S. Setty, MD (retail & digital banking) at SBI.

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