SBI Clarifies On Home Loan Rates, Says Original Interest Rates Restored After Expiry Of Festive Offer

The country's largest public lender stated that the original interest rates starting from 6.95 per cent have been restored, and the special concessions offered to the women borrower will continue.

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New Delhi: Earlier this week it was reported that the country’s largest public lender State Bank of India (SBI) has raised its home loan rate to 6.95 per cent effective April 1, but the bank on Wednesday clarified that there is no hike in rates and original rates have been restored after the expiry of a festive offer.

On Monday, the news agency PTI reported that SBI has revised its home loan rate to 6.95 per cent effective April 1.  According to the Mint report, the bank has clarified in a release stating that the original interest rates starting from 6.95 per cent have been restored. However, the special concessions offered to the women borrower is continuing. Also Read: India Inc. Welcomes RBI's Decision To Keep Policy Rates Unchanged

"In the last few days, there have been news items reported in the press including media regarding hike in SBI Home Loans Interest Rates. In this regard we clarify that limited period special concessions offered during festive season have come to an end on 31 March 2021 and thereafter withdrawn," the bank said.

In March, the bank had waived off home loan processing fees till 31 March to attract customers during the festive season. In this limited period, the starting rate of interest was 6.70 per cent for loans up to Rs75 lakh and 6.75 per cent for loans in the range of Rs75 lakh- Rs5 crore. The lender also gave a 100 per cent waiver on processing fees.

The Reserve Bank of India (RBI) has been insisting that banks reduce their lending rates. The central bank has slashed its key lending rate, repo, by 250 bps since February 2019.
On Wednesday, the RBI kept the policy repo rate unchanged at 4 per cent. Repo rate is the rate at which the central bank lends short-term funds to banks