Good News For Home Buyers State bank of India cuts rate on Home loans
On the return of monetary policy announced by Reserve bank of India on last Thursday. SBI has decided to cut the rates of interest rates for all home loans up to 30 lac on five points basis which are 100 BPS = 1 percentage point . After the reduction home loans of up to 30 lac for women will be available at 8.8% and for others 8.85% the bank has modulate rates by revising the spread without of standards of marginal cost of lending rate (MCLR).
SBI accounts for almost a third of residential loans given by banks and any rate cut by it will help to prompt others to follow suit. State bank of India suggests residential loan rate cut comes at a time.
When the interim budget has initiated boosting housing In real estate sector . The reduction of tax on national rent on a second house is expected to boost residential sales in real estate.
According to SBI Chairman it would be difficult to cut deposit rate as there was a considerable difference between what was offered by SBI and other banks. In recent weeks, many banks have raised their deposit rates in a bid to enhance resource mobilization. He added that the bank has determined to create a product Specific revision on residential loans. On the move to set residential homes and other retail loans to an external standards. He also said it might be difficult to cost EMI product based on an external standards. “When a customer takes a loan, he/she wants to know what the EMI is.
The tax rebate for those with financial gain of up to Rs. 5 lac was part of move towards moderate taxation and high compliance. He said that compliance was improved by connecting many information points like GST, Tax returns and bank statements.
