SBI announces 10 bps cut for loans above Rs 75 lakh

SBI announces 10 bps cut for loans above Rs 75 lakh
State Bank of India (SBI) has announced a reduction of 10 basis points (bps) for home loans above Rs 75 lakhs with effect from 15 June, 2017. The revised interest rates will be 8.55% per annum (p.a.) for salaried women borrowers while for others the rate of interest will be 8.6% p.a, the bank said.

This is the second reduction in interest rates in last two months. SBI had reduced its interest rates by 25 bps on 9 April, 2017. The moves comes just days after Reserve Bank of India decided to reduce the risk weightage on loans above Rs 75 lakh to 50% from 75% earlier. RBI, during its second bi-monthly monetary policy for 2017-18, had announced the reduction in risk weightage.

"SBI has always been at the forefront in keeping the customers benefit first. This interest rate reduction will help home buyers come closer to their dream home," SBI managing director (National Banking) Rajnish Kumar said.

Taking a cue from the recent RBI reduction in risk weightage on home loans, SBI is passing on the benefit to its customers by reducing its interest rates on home loan above Rs 75 lakhs, Kumar added.

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