India’s well known State Bank of India (SBI) is now providing home loans at just 6.95%. SBI home Loans is the largest mortgage provider in India and have helped many families in fulfilling their dream of owning a home. Realty sector welcomed the decision of SBI.
The SBI EBR linked home loan is not for borrowers who had taken loans between April 1, 2016, and September 30, 2019, as they are based on the bank’s MCLR. When the RBI cut repo rate, the banks did not pass-on much to the borrowers and hence lending based on external benchmarks was introduced. Banks have been very reluctant in passing interest rate cuts to customers. But off late, SBI has started passing the benefit to end-users and this is indeed a welcome step by SBI. This will reduce the EMI burden on the people. Other banks both public and private banks should follow the footsteps of SBI,” says Nayan Raheja from Raheja Developers.
Mr. Pradeep Aggarwal, Founder & Chairman –Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, “State Bank of India has taken a great decision which will benefit the end user. An individual with a monthly income between 40000 to 50000 can think of owning a house now. Such consumers will get a clear benefit from the reduction of loan interest rate. Other banks should also come forward and take such steps that can further accelerate the housing sector, and people can fulfil their dream of home. We welcome this decision of SBI.”
Mr. Harvinder Singh Sikka, Managing Director Sikka Group said, “As we all know, due to global pandemic COVID 19 there has been a decrease in economic activities. This resulted in decline of loan demands. The great decision by SBI will those customers who are now thinking of taking their house. SBI home loan interest rate at multi-year low of 6.95% is really a great move. This will be beneficial for both the realty sector as well as end-users.”
According to Mr. Dhiraj Bora, Head Marketing and Communication, Paramount Group, “The decision taken by SBI is appreciable and will reduce the burden of EMI on people. Other banks including public & private should follow the footsteps of SBI.”