The Maharashtra based, Saraswat Co-operative Bank, and the country's largest lender, State Bank of India, have entered into a home loan rates war after the urban co-operative bank lowered its interest rates and equal monthly installments (emi) just below SBI's rates.
Industry analysts are calling it a war among unequals as there is a stark difference between both the banks size. Saraswat Bank's total business as on September 30 of this year stands at Rs. 33, 000 crore, as compared to Rs. 2089644 crore total business done by SBI.
Saraswat Bank has lowered its interest rates on home loans of up to Rs. 25 lakh to 9.9 percent and for home loans above Rs. 25 lakh it is charging10.1 percent interest.
On the other hand, SBI levies an interest rate of 10 percent on home loans below Rs. 30 lakhs and a rate of 10.15 percent for loans above Rs. 30 lakh.
As for the EMIs, for a home loan of Rs. 25 lakh and above Rs. 25 lakh with tenure of 20 years, the customers of Saraswat Bank have to pay Rs. 958 per lakh and Rs. 972 per lakh as EMIs. On the other hand, customers of SBI have to shell out Rs. 966 per lakh and Rs. 975 per lakh on loans of up to Rs. 30 lakh and more than Rs. 30 lakh of the same tenure.