State Bank of India (SBI), the country's largest lender in India has taken a big leap to give a fillip to the affordable housing segment, in line with the Prime Minister's vision of providing "Housing for All" by 2022.
The bank announced a rate cut for home loans to the tune of 25 basis points to 8.35 percent per annum for sub Rs 30 lakh loan. With this reduction, SBI's offering is the lowest in the market. The new rate will be effective from May 9, 2017.
Further, eligible home loan customers can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme.
Interest rates for customers availing home loan above Rs 30 lakh have also been reduced. To supplement affordable housing push, SBI has also come out with special offerings for construction finance for builders for affordable housing projects.
This will give a dual push both for construction finance and also for home finance for affordable homes.
"We have seen a steep hike in the home loan enquiries recently and reduction in rates will further help millions of home buyers fulfill their dream of owning a home," Rajnish Kumar, Managing Director – NBG, SBI said."Individuals can apply for home loans through multiple channels. SBI offers bouquet of home loan products catering to different sections of the society."