State Bank of India has cut its base rate by 30 basis points i.e (0.30%). The bank reduced the base rate and BPLR (Benchmark Prime Lending Rate). SBI, which is also the largest lender in the Indian market waived the processing fees on SBI Home Loan till 31st March 2018. The bank earlier waived the processing fees till 31st December 2017 but the bank surprised the customers with the new year gift. The base rate before the rate cut was 8.95% and now it has been changed to 8.65%. Remember that this rate cut is for the existing SBI customers only. BPLR have been changed to 13.40% which was 13.70% earlier.
With the change in base rate the retail loan customers will get affected which are around 80 Lakhs. SBI have a deposit base of 26.02 Lakh Crore. These new rates and the waiver will be effective from 1st January 2018. According to the officials, This reduction is part of the bank’s efforts to ensure transmission of reduction in the policy rates in the recent past. Currently the bank is offering home loan of up to ₹ 30 Lakhs at the interest rate of 8.30% per annum. In case of processing fee waiver, the facility can be availed by the new customers as well as the other customers who are looking for home loan balance transfer to SBI.
The customers who took a home loan at the start of 2016, just before the MCLR (marginal cost of funds-based lending rate) rate regime began (in April that year), would have been paying a home loan rate that is 10-15 basis points above the base rate. So their home loan rate will come down to 8.75 – 8.80% per annum.
Many people who had taken the loan much earlier would be paying a rate that is 150-200 basis points (i.e 1.5% – 2% per annum) above the base rate. After the cut, their home loan rate will stand at 10.15 – 10.65% per annum.
This is the perfect gift for the SBI customers or the one’s who wanted to take loan from SBI. This is the perfect time to do this. Now you can avail loan with numerous benefit from the country’s largest lender.
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