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SBI cuts affordable home loan rates: All you need to know

SBI is the biggest player in the home loan segment.

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Upping the ante in the housing loan segment, State Bank of India today steeply reduced its affordable home loan rates by up to 25 basis points, offering a lower rate of 8.35% to new women borrowers.

With around 26% market share, the nation's largest lender is also the biggest player in the home loan segment. Even at the existing 8.60%, SBI offers the lowest rate. HDFC, the second-largest player in the space, offers loans at 8.65% to women for loans up to Rs 75 lakh and 8.7% for others. Similar is the minimum rate being offered by the largest private lender, ICICI Bank.

As for male borrowers, the state-owned bank said the limited period offer is valid till July 31 and the new rate for the salaried will be lower by 20 bps at 8.40%. One percentage point is 100 basis points (bps). Under the new government scheme, loans under Rs 30 lakh qualify for affordable housing in which the borrower gets an interest subsidy of Rs 2.67 lakh per annum.

SBI Managing Director for national banking, Rajnish Kumar said the 25 bps reduction is applicable to new women borrowers who are salaried, while for the non-salaried women borrowers, the reduction is 20 bps. Similarly, a male salaried borrower can get a new loan at 8.40%, 20 bps lower than the prevailing rate, and a non-salaried male borrower can avail of a loan at 15 bps lower than the current rate, Kumar said.

"This is a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMI," Kumar told

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