State Bank of India (SBI) made home loans of more than Rs 75 lakh cheaper for new customers. Loans will cost salaried women 8.55% and others 8.6%; i.e. 10 basis points (bps) less than rates available till now.
ICICI Bank charges salaried women an interest rate of 8.7% and other salaried borrowers 8.75% for loans between Rs 75 lakh and Rs 5 crore, while mortgage specialist HDFC charges between 8.5% and 9% for loans of up to Rs 75 lakh.
The RBI on Wednesday reduced the risk weight on certain categories of home loans as also the standard asset provisioning requirement on all home loans to 0.25% from 0.4% earlier, freeing up more capital for banks.
The benefits to banks are the biggest for home loans of over Rs 75 lakh. Last month, most large home loan players including ICICI Bank, HDFC, Indiabulls Housing Finance and Axis Bank, had aggressively reduced rates on affordable home loans, bringing them down to 8.35% in some cases for loans of up to Rs 30 lakh.
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