SBI have shattered rising emotions of many with its recent announcement. SBI may have cut its base lending rate by 40 basis points to 9.3 per cent following RBI’s latest policy rate cut, but home loan customers of the top lender will have to pay up to 0.7 per cent above the base rate, and interest of as much as 10 per cent for their loans.
As it has been declared, with the recent reports that the base rate of interest will be same in which the customers need to pay the same rate of interest for home loans of above Rs 1 crore. Accordingly, the actual reduction in home loan rate will be a maximum of only 20 basis points.
However, for women the only leverage is the rate for Maxgain home loans above Rs 1 crore – at 9.75 per cent would come down by only 20 basis points. The rate of interest for other customers will remain same as before that is 10% with the reduction of 40 basis points in base rate.
For the CRE (Commercial Real Estate) Maxgain loans, SBI would charge as much as 65 basis points above base rate or 9.95 per cent for the women customers and 70 basis points above the base rate or 10 per cent for other customers
The bank spokesperson were not on the front end to comment about this incrase in markup above the base rate. the decline in actual home loan rates has been 75 basis points since December 2013, as against a reduction in base rate by 70 basis points.
After the announcement by RBI, it is SBI who declared its rate in reduction, where RBI surprised many with reduction of 50 basis point on September 29 as it lowered its minimum lending rate or base rate by 40 basis points. SBI on the other hand unleashed its reports- with the highest for any lender so far, from 9.7 per cent to 9.3 per cent with effect from October 5.
The SBI chairperson Arundhati Bhattacharya said “RBI has cut interest rate by 0.50 per cent, we have reduced it by 0.40 per cent.” Well, on one side the central bank- RBI has reduced its minimum lending rate or base rate by 40 basis points making it 6.75% as confirmed lowest during his tenure.
As per the circular, women customers, who typically get a subsidised rate would be charged 20 basis points above the base rate, resulting in an actual interest rate of 9.5 per cent tomorrow onwards — down by only 20 basis points from the existing rate of 9.7 per cent.
Till today, women’s home loan customers were given housing loans at the base rate of 9.7 per cent without any markup, but tomorrow henceforth they will be charged 20 basis points above the base rate of 9.3 per cent or an interest rate of 9.5 percent.
