State Bank of India (SBI), the country’s largest lender, is likely to reduce interest rates on home loans and other retail loans by next week, to coincide with the start of the festive season. The bank’s Maharashtra and Goa circle is already offering home and auto loans at 50 basis points lower than the effective rates for new borrowers.
SBI offers floating rate home loans at an interest rate of 10.75-11.25 per cent. For a fixed rate home loan for up to 10 years, the bank charges an interest rate of 12.75 per cent. The floating rate for auto loans is at 12-12.5 per cent. As part of the promotional offer in Maharashtra, the bank has waived half of the processing charge and is also offering a higher loan to value ratio for new borrowers, which means borrowers could get loans higher than the normal 80-85 per cent of the property cost.