State Bank of India has launched new scheme which assures lowest interest rate in home loan market for first three years. SBI launched SBI easy loan and SBI Advantage home loan. SBI Easy home loan is for amount up to Rs 30 lakh and SBI Advantage home loan is for amount above Rs 30 lakh and will carry special rate of 8 per cent for first one year.
State Bank of India country’s largest lender cuts home loan rates for first three years. The loan rate will be fixed at 8 per cent for first year, in second and third year there will be increased 100 basic points to 9 per cent. Under SBI Easy loan, rate is fixed for low rate for first three years and from fourth years onwards, customers can choose either floating rate 2 per cent below the State Bank Advance Rate (SBAR) or fixed rate 1 per cent below SBAR with a five year reset. Under SBI Advantage home loan, interest rate for second and third year is fixed at 9.5 per cent. From fourth year onwards, customer can either choose floating rate 1 per cent below the SBAR or fixed rate 0.5 per cent below SBAR with a five year reset.
The special rate for home loan fixed by SBI could spark a rate war in the highly competitive home loan rate. HDFC stands second in charging lowest rate for home loan. HDFC charge 9.25 per cent for home loans up to 30 lakh and 9.75 per cent for loans above 30 lakhs. Borrowers can get best from this competition and SBI move to lower the loan rate could spark rate war with leading lenders in home loan market.
Reference:
