Just a day after RBI announced a rate cut in its key lending rate, SBI too has made a rate cut in the interest rate over the home loans up to Rs 30 lakh. SBI slashed its key interest rate by 25 basis points, to transfer the benefits of rate cut by RBI on Friday to common people, pegging its new interest rate at 6.25 percent.
“On the back of the monetary policy announced by the RBI, we have taken the lead to cut interest rates on home loans up to Rs 30 lakh,” the bank’s chairman, Rajnish Kumar, said.
This rate cut by SBI, which has the highest market share of Home loan market will benefit middle class and upper-middle class section of the society. “SBI has the highest market share of the home loans market and it is only appropriate that we empower the large lower and middle class segment by transmitting the rate cut announced by the RBI.” said Rajnish Singh.
On Friday RBI announced a 25 bps cut in the Repo rate and also changed the monetary policy stance from “calibrated Tightening” to “Neutral”. The rate cut will now enable other lenders to lend its consumer at a lower interest rate. Other lender’s apart from SBI can also announce the similar cut in lending rate, after MPC’s decision to slash Repo rate, which came on Friday