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SBI Home Loan borrowers! Here's how, from August 2019, your EMIs will become Cheaper

There's no better time than now for the prospective home-owners who have been looking to dabble in the real estate market. Regarded as the country's largest lender by assets, State Bank of India (SBI) has announced another steep rate cut following RBI’s fourth consecutive repo rate cut this year. For the uninitiated, the repo rate can be described as the interest rate at which the RBI lends money to commercial banks.

 

MCLR Cut – August
With effect from 10th August 2019, SBI has further reduced the interest rates on Home Loans. The MCLR rate has been slashed by an additional 15 basis points across all tenors, i.e., 1 Year MCLR will further reduce to 8.25 percent from 8.40 percent. A lower MCLR effectively means home-owners can now enjoy lower SBI Home Loan Interest Rates which, in turn, relates to a low-interest burden – other factors being constant.

 

The MCLR rates affect not only the interest rates of Home Loans but also Card and retail loans like Car Loans on a floating rate.

 

This move is beneficial for both existing as well as new Home Loan borrowers. For instance, if you as a borrower have 12 months, your Home Loan and the subsequent EMIs will stand to get reset at the end of those 12 months. This means that if your reset date is in September or a few months later, you will start benefiting from paying lower EMIs.

 

Effective 10th August 2019, here's a table which gives you a breakdown of the revised SBI's tenor-wise MCLR.

Tenor

 

Existing MCLR (In %)

 

Revised MCLR (In %)

 

Overnight

 

8.05

 

7.9

 

 

One Month

 

8.05

 

7.9

 

 

 

Three Month

 

8.1

 

7.95

 

Six Month

 

8.25

 

8.1

 

One Year

 

8.4

 

8.25

 

 

 

Two Years

 

8.5

 

8.35

 

Three Years

 

8.6

 

8.45

 

 

 

Furthermore, those individuals looking to Avail an SBI Home Loan, this is possibly the best possible news.

 

SBI Repo-Linked Home Loan

 

Moreover, with effect from July 01, 2019, SBI has introduced repo-linked home loan products which basically entails that any changes in the key interest rate made by the central bank are passed on directly to the customers. This comes hot on heels after their previous announcement in June where saving deposits and short term loan account above Rs. 1,00,000 were linked with the policy repo rate. SBI Home Loan Interest Rates are already the most affordable rates one can avail of and this announcement has made their EMI's even more attractive. Now on, owing to reduction on the RBI’s benchmark lending, customers could tap the immediate benefits on this repo linked products.

 

The Repo rate which stood at 5.75 percent was dropped a further 35 basis points and currently stands at 5.40 percent. This announcement was made by the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) in its third bi-monthly Monetary Policy Statement for the current financial year 2019-20. The overall implications of this announcement are that the repo rate in the calendar year 2019 has been cut by 1.10 percent since January 2019.

 

SBI Home Loan Features


Prospective home loan borrowers have lots to gain from SBI Home Loans. Listed below are some of the features:

 

  • SBI has a bunch of Home Loan offerings to choose from. From a Regular Home Loan to Flexipay Home Loan, Privilege Home Loan and Shaurya home Loan to Pre-approved Home Loan, Realty Home Loan and Bridge Home Loan.
  • Under the SBI Regular Home Loan, the bank interest rate is calculated on daily reducing balance, which means any repayments stand to benefit from the day it is paid back to the bank.
  • SBI has an Insta Home Top-Up Loan feature available to pre-selected Home Loan customers. Given at a minimum value of Rs. 1,00,000 and a maximum of Rs. 5,00,000, this allows individuals to seamlessly top up their existing Home Loans. Interest rate is 100 basis points above 1-year MCLR in the case of salaried borrowers and 150 basis points above 1-year MCLR in the case of non-salaried borrowers.
  • Moreover, this facility is fully automated without the need for manual intervention and doesn't need any documents to submitted either. Last but not least, it has a low processing fee and attracts no hidden fees or charges.
  • Anyone between the ages of 18 and 70 years can avail of an SBI Home Loan and repay it over a tenor of 30 years. A long term tenure not only ensure lower EMIs but also attracts a no pre-payment penalty. This allows an individual to repay the entire outstanding loan as and when the funds are made available.
Website:https://www.mymoneymantra.com/home-loan.html
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