Home loan is a major financial commitment. It is probably the biggest loan that most people take to buy their dream home. Banks and financial institutions in the country offer housing loans up to ₹10 crore at a range of interest rates. Different banks and institutions offer different housing loan interest rates. The tenure options also vary from bank to bank. You can compare features of the loan products offered by different banks and find the right match for your budget. Country's largest lender State Bank of India (SBI) has lowered lending rates by 10 basis points, effective 10th December, making loans cheaper. The new rates mark the eight reduction by SBI this financial year. After the rate cut, SBI's one-year marginal cost-based lending rates (MCLR) has come down to 7.9% per annum, down from 8.00 per cent.
Tenor-wise MCLR effective from 10th December
One month 7.65%
Three month 7.70%
Six month 7.85%
One year 7.90%
Two years 8.10%
Three years 8.20%
The announcement by SBI came days after the Reserve Bank of India's six-member Monetary Policy Committee (MPC) unanimously kept the repo rate unchanged at 5.15%.
Types of loans offered by SBI
SBI has a range of home loan products — short term and long term. For the short-term loans, rate of interest is slightly higher than the regular home loan. Apart from that SBI has loan options for under-construction properties and government employees.
You can directly apply for a loan online or offline with a few easy steps. There are 6 ways to apply for SBI home loan, tweeted SBI.
1) Login to YONO
2) Call on 1800112018
3) SMS 'Home' to 567676
4) Visit the nearest SBI Branch
5) Visit www.homeloans.sbi
6) Apply on www.psbloansin59minutes.com
A look at certain advantages of SBI home loan
1) Low processing charges
2) No hidden costs
3) No prepayment penalties
4) Reduce your interest burden by prepaying the loan
5) Low interest rates
6) Repayment up to 30 years
7) Home loan available as overdraft
8) Interest concession for women borrowers