In a move to cash in on the upcoming festive season, State Bank of India (SBI) has reduced home loan interest rates for its customers by up to 65 basis points. In a campaign period launched on September 1, 2023, India’s largest will offer home loans at 8.7% interest to borrowers with no credit history as against the card rate interest rate of 9.35%.
Typically, banks charge higher interest from such borrowers.
SBI home loan interest rate Sep 2023
| Credit score | Interest rate | Concession over card rate |
| Above 800 | 8.60% | 55 BPS |
| 750-799 | 8.60% | 65 BPS |
| 700-749 | 8.70% | 65 BPS |
| 650 – 699 | 9.45% | None |
| 550 – 649 | 9.65% | None |
| 151-200 | 8.70% | 65 BPS |
| 101-150 | 9.45% | None |
| No credit history | 8.70% | 65 BPS |
Source: SBI
The bank will also offer the same rate of interest to borrowers with a credit score ranging between 151 to 200 or 700 to 749. The card rate for these categories is 9.45% and 9.35%, respectively.
SBI will, however, offer its best rates to borrowers with a credit score of 750 and above. The public lender has cut the interest rate by 55 BPS for such customers and will offer them home loans at 8.6% annual interest. On the other hand, borrowers with 649 and 700 credit score will now get loans at 8.70%
The new rates will be applicable till December 31, 2023. One basis point is equal to one percentage point.
No change in rates is made for borrowers with credit scores ranging between 101-150, 550-649 and 650-699. SBI will charge 9.45% interest from customers falling in the first and third credit score range; it will charge 9.65% interest from borrowers falling in the second credit score range.
Aside from lower interest, SBI is also offering complete waiver on the home loan processing free for takeovers, resale and ready-to-move-in properties purchases.
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