Home loan cheapest in 6 years |
Home loan rates in India have fallen to their lowest level in six years with the State Bank of India, the country`s largest lender, cutting the effective rate to 8.6% from 9.10%. While the SBI cut its one-year marginal cost of lending rate (MCLR) — the benchmark to which home loans are linked — to 8%, against 8.9% earlier, it kept the spread above MCLR at 60 basis points, against 20 basis points earlier. So, home loans up to Rs 75 lakh, earlier available at 9.1%, can now be taken at 8.6%. For others, the rate would be 8.65%, against 9.15% earlier. Besides SBI, the Union Bank of India and the Punjab National Bank also cut rates. Private sector banks like ICICI Bank are expected to follow suit. The reduction in lending rates+ by several public sector banks will make the affordable home loan scheme, announced by PM Modi recently, available at a little over 4% for borrowers seeking loans of up to Rs 9 lakh. Details of the scheme are yet to be announced.
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