SBI home loan is available at 8.05 per cent from 1 st September 2019, which is the lowest among all Indian commercial banks. If we go by the list of various Indian banks and their home loan interest rates, SBI home loan emerges as the cheapest in terms of EMI and SBI home loan processing fee is also the lowest. This way, SBI home loan pattern is making a win-win situation for potential homebuyers in the coming festival season. So, major banks like ICICI Bank, HDFC Bank, Axis Bank, Punjab National Bank and other home loan providers may feel the heat of competition soon.
Comparing SBI home loan interest rate with other major home loan lenders, its nearest competitor is Punjab National Bank, whose home loan is available at 8.1 per cent. However, in terms of tough competition that SBI home loan faces, is from HDFC Bank, ICICI Bank, Axis Bank and some NBFCs like LIC Housing Finance, Indiabulls etc. Citi Bank home loan interest rate is 8.5 per cent and its processing fee is nil. But, comparing the kind of clientele Citi Bank caters to and the SBI home loan department addresses, there seems no competition between these banks.
Among major home loan lending banks in India, HDFC Bank home loan interest rate is 8.4 per cent, Axis Bank home loan interest rate is 8.6 per cent, Bank of Baroda home loan interest rate is 8.45 per cent while ICICI Bank home loan interest rate is 9.25 per cent, which is almost 1.2 per cent higher than the SBI home loan interest rate.
Recently, India’s largest commercial bank SBI had cut down its home loan interest rate from 8.25 per cent to 8.05 per cent. SBI also reduced MCLR by 0.15 per cent that resulted in overall SBI home loan interest rate reduction by 0.35 per cent since April 2019. Currently, SBI offers the cheapest home loan as repo rate linked home loan and this home loan interest rate is applicable to all existing and new loan from 1st September 2019.