Under the compulsive implementation of new interest rate calculation regime by RBI, State Bank of India (SBI) and Industrial Credit and Investment Corporation of India (ICICI) have lowered their interest rates by .10 which brings the current rate to 9.4% now. The other banks will soon have to follow this new change because it is mandatory. All of Their lending rates may also fall soon with the Marginal Cost of Funds based Lending Rate (MCLR) system which is coming into force from April 1.
Along with this RBI has also announced one 0.25 percent policy rate cut on 5th April. It is awaiting the banks approval and once they agree with it, the rates for borrowers may go down further.
Today SBI gave out a statement that “it has fixed its home loan interest rate at 9.45 percent, which is 0.25 percentage point more than its one-year marginal cost of fund-based lending rate of 9.20 percent. “
SBI also said “Women borrower would get the loan 0.20 percentage point above the MCLR at 9.40 percent” will be unlike before when the home loan rate 9.5 percent for women borrowers and 9.55% for others.
If we talk about SBI’s private contender ICICI, the bank’s website has changed its effective rate of interest and increased it to 9.65% for loans above Rs 5 crore taken by women borrowers under floating interest rate, which makes it attractive than SBI’s rate still.
There is a legitimate exemption made for the weaker sections if het society. Borrowers from this section will be allowed avail loans of up to Rs 25 lakh at 9.40%.
According to their marginal cost of funds, RBI has asked the banks to price fixed-rate loans of up to three years, starting from 1st of April. All banks have to follow MCLR system, a new standardized methodology which will make sure that fair interest rates are provided to borrowers as well as to banks.