State Bank of India: Now, Housing Loans at 9.95%

India's largest bank State Bank of India (SBI) cut its base rate by 0.05% to 9.70%, effective February 4, 2013 in a move that will make loans cheaper for all its customers.

Reserve Bank of India (RBI) had cut the policy rate and the cash reserve ratio (CRR) by 0.25% each. This is the first time since March 2011 that interest rates on SBI's home loans rates will fall below 10% that is 9.95%.

This will therefore now come down to 9.95%. The SBI bank has also cut the processing fees on housing loans by 50%. According to an SBI official the bank’s total housing loan portfolio stood at about Rs 1,13,000 crore as on December 31, 2012

EMI in Rs. 1 Lakh / Month

Period of Loan

(years)                    Up to Rs. 30 Lakhs

                                   at 9.95%                   Above Rs. 30 Lakhs

                                                                         at 10.10 % 

30                               Rs. 874                           Rs. 885

25                               Rs. 905                           Rs. 916

20                               Rs. 962                           Rs. 972

15                               Rs. 1,072                        Rs. 1,081 

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