In order to attract more number of customers country’s largest public sector Bank State Bank of India has decided to provide home loans to customer at lower rates. SBI is offering is home loans on lesser rates in comparison to its competitor banks.
SBI is providing the rate of 10.15%, the base rate of the bank is 10%. Base rate is basically the minimum rate of the bank below which it cannot lend. For a sum up to Rs75 lakhs banks is providing interest rate of 10.15%, where as HDFC bank and other banks are providing at a rate of 10.25%. A senior official of the SBI reported that the bank’s measure to lower the rates is to provide the customers the offer to switch over to SBI. The bank is offering the lower rates to the customers of the competitor banks, where as many of the bank’s customers are paying higher rates. The bank’s scheme is only for the new buyers. It is expected the banks are now focusing on larger loans by offering uniform rates up to 75 lakhs as against Rs 30 lakhs earlier.