State Bank of India lowers home loan interest rates, check impact, benefits of SBI's decision

State Bank of India (SBI), the largest lender in the public sector, has rolled out a new promotion after its holiday offer called "campaign rates," as part of which it is lowering home loan interest rates by 30 to 40 basis points. 

The offer is good through March 31, 2023. Customers who take advantage of the new offer from SBI can get standard home loans with interest rates as low as 8.60%. It should be noted, too, that SBI's house loan rates fluctuate according to credit ratings. SBI has also waived processing fees for standard and top-up house loans in addition to these advantages. The bank previously announced a holiday offer that would go from October 4, 2022, until January 31, 2023. To know the new interest rates on home loans, read below:

30 to 40 bps discount on regular home loan:
The most significant discounts on home loan rates, between 30 and 40 bps, are being offered by SBI.  However, only credit ratings between 700 and 800 or their equivalents are covered by these exemptions.

With a CIBIL score of at least 800, SBI's house loan rate is 8.60% under the campaign rates offer, which is a 30 bps drop over the usual rate of 8.90%. The bank is offering 40 basis points in concessions for credit scores of 700 to 749 and 750 to 799, respectively, bringing the rates down from 9% and 9.10% to 8.60% and 8.70%.

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Notably, SBI is also reducing home loan rates for borrowers having scores of "NTC/NO CIBIL/-1" by 30 bps, from 9.10 per cent to 8.80 per cent. Rates for home loans with credit scores between 650 and 699 are unchanged at 9.20 per cent, while those with scores between 550 and 649 are also unchanged at this rate.

Additionally, these rates offer a 5bps discount for female borrowers and a 5bps discount for people who have salary accounts for Privilege and Apon Ghar

30 bps discount on top-up loan:
On credit scores between 700 and greater than or equal to 800, SBI has announced 30 bps discounts on each.

The top loan rate offered by SBI under the campaign rates offer is 9% on credit scores greater than or equal to 800, down from the standard rate of 9.30%. While the rate is 9.10% on scores between 750 and 799, it is still below the average rate of 9.40%. Last but not least, the cost is reduced from the standard rate of 9.50% to 9.20% for credit scores of 700-749.

The rates for scores between 650 and 699, 550 and 649, and NTC/NO CIBIL/-1 scores remain at 9.60%, 9.90%, and 9.50%, respectively.

Additionally, SBI is offering a 5 basis point discount on card rates for MaxGain & Realty loans (apart from CRE Loans) to borrowers with a CIBIL Score of at least 750.