The country’s largest lender, State Bank of India (SBI), has announced a further reduction in interest rates by 0.15% for its home loans up to Rs 75 lakhs, while ICICI Bank has unveiled an overdraft facility along with its home loans.
Following the rate cut, home loans from SBI would be available at 9.15%, while the rate for women borrowers will be 9.10%. On a home loan of Rs 50 lakhs, the reduction in interest rate by 0.15% by SBI, will help a home buyer to save Rs 542 per month and approximately Rs 2 lakhs, during the loan tenure of 30 years, SBI said. According to SBI, the value of the savings on EMI of Rs 542 per month, if invested in a recurring deposit, will be approximately Rs 6 lakhs at the end of the loan tenure.
Meanwhile, private sector lender, ICICI Bank is offering salaried individuals who have an account with it, credit from Rs 5 lakhs to Rs 1 crore, against property owned by them. The product, ‘ICICI Bank Home Overdraft’, will offer the dual advantages of a term loan, as well as an overdraft facility, the bank said in a statement. “While the term loan provides customers with quick funds for immediate needs, the overdraft facility offers them the flexibility to access funds instantly for expenses, as and when required,” it said.
See also: SBI, ICICI Bank cut home loan rates
Those buying the overdraft loan from the bank would be able to utilise the funds for their personal needs, such as for education, medical treatment, home renovation, marriage and overseas travel, among others. Beginning from a minimum of Rs 5 lakhs to a maximum of Rs 1 crore, customers will have the facility to avail a minimum 10% of the total amount as term loan and maximum 90% as overdraft. ICICI Bank said the interest on the term loan, would be charged as per the equated monthly instalment, while on the overdraft, the charges will only be on the utilised amount for the period the funds are used.
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