The country’s largest government bank SBI (State Bank of India) has given a big gift to its customers before Diwali. The bank has cut the base rate and lending rate by 0.05%. This move of the bank will have a direct impact on the pocket of the common man. SBI’s home loan, auto loan, personal loan, and other loan installments will become cheaper. Let us tell you that all home loans are taken after July 2010 (but before April 1, 2016) are linked to the base rate. In this case, banks are free to calculate the cost of funds based on the average cost of funds or MCLR.
SBI made loans cheaper
SBI has announced a reduction of 0.05% in the base rate and lending rate. After the base rate cut, it has come down to 7.54 percent. At the same time, the lending rate has come down by 0.05 percent to 12.20 percent. The new rates will be applicable from September 15. Let us tell you that the amount you pay to the bank every month has both interest and principal, this is called Equal Monthly Installment or EMI.
Kotak Mahindra Bank has also reduced loan rates
Private sector bank Kotak Mahindra Bank announced a cut in the interest rate of home loans last week. Kotak Mahindra Bank has cut 0.15 percent. After the deduction, the interest rate of home loans has come down from 6.65 percent to 6.50 percent.
Affordable home loan rates for customers are available till November 8, 2021. Apart from new home loan customers, this new interest rate will also apply to those customers who come to Kotak Mahindra Bank by transfer from any other bank.
The bank said that the new rate of interest for home loans has come into effect from September 10. At present, 16 banks and other housing finance companies in the country are offering home loans to customers at an interest rate of less than seven percent.
HDFC, ICIC Bank Loan
Housing finance company HDFC Home Loan has interest rates starting from 6.75 percent (for women customers). However, for all other customers, the home loan interest rates will start from 6.80 percent. Now taking a loan of up to 30 lakhs for 20 years, then how much EMI will be made. ICICI Bank has fixed the interest rate on the home loan from 6.75 percent to 7.55 percent.