Home loan rates have decreased to their lowest level in 6 years with the SBI, the country’s largest lender, cutting the effective rate to 8.6 percent from 9.10 percent.
While the State Bank of India cut its 1-year marginal cost of lending rate (MCLR) — the benchmark to which home loans are linked — to 8 percent, against 8.9 percent earlier, it kept the spread above MCLR at 60 basis points, against 20 basis points earlier.
So, home loans upwards to Rs 75 lakh, earlier available at 9.1 percent, can now be taken at 8.6 percent. For others, the rate would be 8.65%, against 9.15% earlier. Besides SBI, the Union Bank of India and the Punjab National Bank also cut rates.