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SBI, ICICI Cut Home Loan Interest Rates

SBI, ICICI Banks following implementation of a new interest rate calculation regime mandated by RBI.

Published: 08th April 2016 04:13 AM  |   Last Updated: 08th April 2016 04:13 AM   |  A+A-

NEW DELHI: State Bank of India and ICICI Bank on Thursday following implementation of a new interest rate calculation regime mandated by RBI.

SBI cut its lending rate for home loans by 0.20 % at 9.4 per cent for women customers and at a rate 0.25% to 9.45 per cent for others under the Marginal Cost of Funds based Lending Rate (MCLR) system effective retrospectively from April 1, 2016.

ICICI Bank’s minimum home loan rates are also at par with SBI as both the 1-year MCLR and the spread over it are same. However ICICI Bank’s effective rate of interest will go up to 9.65 per cent for loans above Rs 5 crore taken by women borrowers under floating interest rate.

The weaker section borrowers will be able to avail loans of up to Rs 25 lakh at 9.40 per cent.

If other banks also decide to pass on the latest 0.25 per cent policy rate cut announced by RBI on April 5, the rates for borrowers may go down.

SBI cut the rate following implementation of a new interest rate calculation regime mandated by RBI.  If you plan to take a floating rate home loan, your loan will now be linked to MCLR.

Similarly, car loan would be available at 0.60 per cent above one year MCLR. Thus, it would be 9.80 per cent, the statement said. Student loans of up to Rs 7 lakh would be available at 2 per cent above MCLR, currently it is at 11.20 per cent while 1.70 per cent above MCLR at 10.90 per cent.

SBI Skill loan will be available 3.90 per cent above MCLR at 13.10 per cent. The base rate or the minimum lending rate of the bank is 9.3 per cent.

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