The State Bank of India has been one of the most trusted and efficient banks, with its reputation spreading countrywide, including the rural parts of the country. It has been known to be the best bank for serving its customers in the best way possible. We rely on the banks for helping us during any financial situations in our lives.
And one of the most substantial financial situations, where we need the banks’ assistance is when building our home or place or the like, and it requires hefty sum of money, which is not possible for anyone to possess at present. So, here’s where the home loans help us.
Often we find the home loan interest rates are expensively high. But, the SBI home loan interest rate for 2022 has been reduced, and we will discuss this topic in the following discussion. So, without any more delay, let us begin with our discussion.
What are home loan interest rates?
First, let us start with knowing about interest rates for home loans. The loan that the bank provides us to build our home, apartment or the like is referred to as the home loan. But, like every other loan, this has to repaid to the bank with some added interest which is a percentage of the entire loan amount.
The rate of interest levied on the home loans is the home loan interest rate. This rate varies from one bank to another depending on the spread or margins as decided by the bank’s internal team. But, SBI has currently reduced its interest rates on home loans, which is beneficial for everyone who is to take loans from the bank specifically for buying a home.
The current rate of interest at SBI for home loans :
The interest rate reduction on the home loans has resulted from the festive season offering. It offers credit score linked home loans at an interest rate of 6.7% per annum. Also, the rate of interest for the home loans will remain unchanged. Irrespective of what the amount of the home loan is, as the bank is offering this rate under the RLLR scheme which states that the rate of interest is subject to change as per the guidelines given by the RBI under its Monetary Policy Committee review every quarter.
Previously, when an individual took a loan from the SBI, which amounted to more than Rs. 75 lakh, they had to pay back the loan with a rate of interest of 7.15% per annum. Now, the rate of interest has been reduced to 6.7% per annum, and that too, irrespective of the loan amount. It can be recorded as one of the lowest home loan interest rates in the bank’s history.
What other aspects were changed along with the reduction of the whole loan interest rate?
SBI did not just reduce the rate of interest for the home loans; it also dropped the expenses for processing and started offering incentives for the non-salaried borrowers. Let us know more about these changes in further detail:
i) Discarding the distinction between the salaried and the non-salaried borrowers for a home loan:
Previously, the SBI used to charge a rate of interest on the home loan from the non-salaried borrowers, which was 15 bps higher than the salaried borrowers. But, now, they have brought in changes, which have demolished such distinction.
Now, the SBI does not charge any additional interest rate which are related to one’s occupation. It will be greatly helpful and beneficial for the non-salaried borrowers, as they are most likely to face difficulties paying back the home loan with such a high-interest rate.
ii) Waving off the processing fees:
Along with enjoying the most in-expensive SBI home loan interest rate 2022, you can also enjoy saving the charges for processing at SBI. Previously, SBI used to charge for filing and processing of the loan application, referred to as the processing fee, and its festive season offer also held back from charging the processing fee.
Lastly, SBI has also reduced its base rate to 6.50% per annum and the prime lending rate, now 12.2%. These changed rates have been implemented since 15th September 2021, according to the SBI website The home loan interest rate of 6.7% has been one of the lowest home loan interest rates till now. So, there are many benefits from these festive changes that SBI has offered.