SBI cuts affordable home loan rates by 0.25%; lowest in market

New Delhi: India's largest lender SBI on Monday announced a steep interest rate reduction of up to 0.25 percent for affordable housing loans, offering 8.35 percent to new women borrowers.

Under the new government scheme, loans under Rs 30 lakh qualify for affordable housing.

In the male borrower category, the limited period offer is valid till July 31 and the reduction for the salaried is 0.20 percent to 8.40 percent and that of non-salaried 0.15 percent.

The new rate reduction of 0.25 percent for women will be for the salaried borrowers who can avail of 8.35 percent, and for the non-salaried, it will be a 0.20 percent cut.

The 0.25 percent reduction translates into a saving of Rs 530 per month on EMIs. The new rates will be effective tomorrow.

With a home loan book of Rs 2.23 trillion, SBI leads the segment with 25-26 percent market share.