SBI home loan interest rate reduced; Check how much new borrowers will save
Premium- SBI home loan interest rate will now start from 6.7 per cent on fresh home loans up to ₹30 lakh
The State Bank of India (SBI) has reduced lower range of home loan interest rate to 6.70 per cent from 6.95 per cent. As per the SBI press statement released on Saturday, SBI home loan interest rate will now begin from 6.70 per cent on fresh home loans up to ₹30 lakh. For SBI home loan above ₹30 lakh and up to ₹75 lakh starting SBI home loan interest rate will be 6.95 per cent while for home loan above ₹75 lakh, SBI home loan interest rate will start from 7.05 per cent. The largest Indian commercial bank has also announced an additional 0.05 per cent home loan interest rate rebate to the female customers.
Impact of lower interest rate on fresh home loan EMI
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According to the SBI home loan calculator, monthly EMI on ₹30 lakh loan for a period of 15 years at 6.95 per cent (previous starting SBI home loan interest rate) is ₹26,881.
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However, after the Saturday announcement, at starting SBI home loan interest rate of 6.70 per cent, the SBI calculator suggests that the monthly EMI on ₹30 lakh home loan taken for the period of 15 years will be ₹26,464.
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That means, after the reduction in starting SBI home loan from 6.95 per cent to 6.70 per cent, fresh SBI home loan borrower's monthly EMI will go down by ₹417 per month if the fresh loan is ₹30 lakh for the period of 15 years. So, over the 15 years period, the fresh SBI home loan borrower will be able to save ₹75,060 ( ₹417x12x15).
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However, in the case of female home loan borrower, there will be an additional 0.05 per cent SBI home loan interest rate rebate and in that case starting home loan will be 6.65 per cent. So, a female customer's home loan EMI for the same ₹30 lakh for the period of 15 years will be ₹26,381. Means a female home loan borrower will be able to save ₹90,000 over the period of fresh home loan repayment.
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