HomeFinance NewsSBI reduces home loan interest rate by 5 basis points

SBI reduces home loan interest rate by 5 basis points

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By CNBC-TV18 February 8, 2019, 10:07:51 PM IST (Updated)

SBI reduces home loan interest rate by 5 basis points
On the back of the monetary policy announced by the Reserve Bank of India(RBI) on February 7, the State Bank of India

has reduced the interest rates on its home loans for all loans up by Rs 30 lakh.

One basis point is a hundredth of a percentage point.

The bank has reduced the interest rate to 8.7 percent from 8.75 percent.

"As the nation’s largest lender, we have always kept customer interests at the centre. SBI has the highest market share of the home loans market and it is only appropriate that we empower the large lower and middle class segment by transmitting the rate cut announced by the RBI," said Rajnish Kumar, Chairman, SBI.

The new rates are effective from Friday.

On February 7, the RBI cut its repo rate at which it lends to the system by 0.25 percent to 6.25 percent in a policy which has been termed as pro-growth.

Governor Shaktikanta Das had said he will speak to bankers to ensure a quicker and better transmission of the policy rates in a meeting scheduled to take place in two-three weeks.

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