India’s largest bank State Bank of India has cut home loan interest rates by more than 75 lakhs by 10 basis points. SBI has taken this decision within a few days of reducing the capital requirements for big home loans from the RBI. This decision by the legendary public bank can improve property market. With reduction of 0.10 points, SBI women will be able to get home loans up to Rs 75 lakhs annually, 8.55% annually and others at 8.60%. SBI has said that new rates will be effective from June 15.
In its monetary policy, the RBI decided to reduce weightage risk on the big home loans by 75 basis points to 50 basis points. After declaring policy rates on Wednesday, the RBI had said, “Considering the importance of the housing sector and the importance of its economy impact, we have decided to reduce risk weightages on certain categories.”
Talking to the media, the deputy governor of RBI N. S Vishwanathan had said, ‘We estimate that the default in the Home People segment is the lowest. Therefore, we decided to reduce SLR to 50 basis points for this segment. This will give banks more cash. It is possible that due to these two steps taken by the central bank, the banks could get more funds for the loan.