SBI Ushers In Festive Season with Killer Home Loan Rate

By,Anuj Puri, Chairman – ANAROCK Group

To usher in the festive season, SBI has announced home loan interest rates at 6.70%, regardless of loan amount. This is an extremely competitive move that virtually negates all the previous limitations which applied to special home loan interest rates. Instead of focusing on just budget housing, this new interest rate is genuinely democratic as buyers from any budget bandwidth will benefit.

Latest ANAROCK research reveals that the highest demand is currently in the premium segment, where properties are priced INR 80 lakh and above. This is primarily the result of homes now doubling as offices and e-learning centres. This lending rate will also not restrict which cities will benefit from it – in previous concessional rates limited to budget housing, only tier 2 and tier 3 cities could really benefit. With this democratized interest rate, SBI also addresses the huge housing demand in the metros. This move is aptly timed, coinciding with the beginning of the festive season.

This year, we are likely to see significantly improved traction in the housing segment during this period. Waiving of processing fees and occupation-linked interest premium are added levels of savings. Cumulatively, this package is the most compellingly attractive offering ever extended by a housing loan lender and it is reasonable to expect that other lenders will follow SBI’s footsteps in order to remain competitive