State Bank of India slashes home loan interest rates by 25 bps to 6.7%

By February 2021, SBI's home loan portfolio reached Rs 5 trillion-mark

Country's largest lender, State Bank of India, has reduced lending rate in home loans by 25 basis points (bps) on downward revision in the risk premiums. The revised rates will be 6.7 per cent for loans upto Rs 30 lakh. The old rate for this slab was 6.95 per cent.

C S Setty, managing director ( digital and retail banking) said the bank has reduced the risk premium (varying across slabs) as defualt rates have remained low. However, the state-owned lender has not lowered credit underwriting standards. The interest rate will continue to be linked to credit score and those with