SBI Lowers Interest Rates on Loans
Following a review of the Reserve Bank of India's (RBI) policies, the State Bank of India (SBI) lowered personal, vehicle, and home loan interest rates. The rate cut by 25 basis points to 6.25% by the RBI of the repo rate led the SBI to reduce its External Benchmark-Based Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 25 basis points. The change will be effective from February 15, which means people can now get loans at a cheaper rate.
Home Loan Borrowers - Check With Your Bank
If you have taken a home loan from SBI before, you should inquire about the new rates to see if you are qualified for the benefit. The choice you will get is the possibility to either reduce the Equated Monthly Installment (EMI) or decrease the tenure of the loan. In situations where one can do it, experts recommend the shortening of the payment duration.
Other Banks Also Cut Interest Rates
Similar to the changes made by SBI, Canara Bank, Punjab National Bank (PNB), Union Bank of India, and Bank of Baroda among other public sector banks have also slashed their repo-based lending rates by 0.25%.
SBI Home Loan Interest Rates Based on Credit Score
Now, the range of interest rates for SBI housing loans is 8.25% - 9.20% depending on the borrower's grade point average (GPA). Thus the rate can be anywhere from 8.55% to 11.05% if you take a top-up loan from SBI. EBLR-based loans with an interest rate of 8.90% have been introduced.
Revised SBI Loan Rates - Key Changes
- EBLR reduced from 9.15% to 8.90%
- RLLR reduced from 8.75% to 8.50%
- No changes in MCLR, Benchmark Prime Lending Rate, or Base Rate
Impact on New and Existing Borrowers
The revised interest rates apply to new home, vehicle, and personal loans. Borrowers will see a slight reduction in EMI amounts. Existing loan holders may choose between lower EMIs or a shorter loan tenure based on their financial preference.
For further details, borrowers are advised to contact their respective bank branches.
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