27
Saturday
May 2017
3:28 PM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | About Deepika 
Business News
SBI cuts loan rates on affordable housing
 
(Mumbai, May 08 2017):State Bank of India (SBI) reduced its interest rate by 25 basis points (bps) on home loans up to Rs 30 lakh, to 8.35 per cent, from Tuesday for new women borrowers. For male borrowers, the cut is by 20 bps, to 8.4 per cent.

With around 26 per cent market share, the nation's largest lender is also the biggest in the home loan segment (their loan book here is Rs 2.23 lakh crore).


And, even at the earlier rates, SBI offered the lowest. Housing Development Finance Corporation, second largest in the space, offers loans at 8.65 per cent to women for loans up to Rs 75 lakh and 8.7 per cent for others. So does ICICI Bank, the largest private lender.

The interest rates for customers availing a home loan above Rs 30 lakh have also been reduced by 10 bps. Over and above the rate benefit, an eligible customer may also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana.

Rajnish Kumar, managing director, said the new offer might not push up its market share significantly, as 45 per cent of its home loan book was already under the Rs 30 lakh bracket, and the rest of the credit industry wa very aggressive.

SBI is also giving a special offer for construction finance to builders for affordable housing projects.

Asked about delinquency levels in the segment, Kumar said the highest was among rural borrowers with a ticket size of under Rs 4 lakh. Rating agency CRISIL in a report on affordable housing finance, said growth in overall advances was expected to remain healthy at a 17 per cent compounded annual rate over the next three years. These are expected to almost double to Rs 12,70,000 crore by 201920, from Rs 670,000 crore as on endMarch 2016, it said. Competition has intensified in the traditional home loans space, particularly from banks, which are being compelled by subdued demand and asset quality pressures in the corporate sector to focus on retail (to nonwealthy individuals) lending.

Banks· home loan growth is expected to outpace that of housing finance companies for the first time in five years. The competition could reduce as corporate credit demand picks up gradually, CRISIL added.

Happy homes


*With around 26 per cent market share, SBI is also the biggest player in the home loan segment

*HDFC, the secondlargest player in the space, offers loans at 8.65 per cent to women for loans up to Rs75 lakh and 8.7 per cent for others

*As for male borrowers, SBI said the limited period offer is valid till July 31 and the new rate for the salaried will be lower by 20 bps at 8.40 per cent

*Under the new government scheme, loans under Rs30 lakh qualify for affordable housing in which the borrower gets an interest subsidy of Rs2.67 lakh per annum


Trade & investment: Sushma holds talks with Mauritian PM
India, Germany to work together on alternative medicine
Rupee on way to recovery, gains 25 paise
Sensex recovers 123 pts on global cues, F&O expiry
Took 700 steps to improve ease of doing business: Nirmala Sitharaman
Food items to be cheaper under GST: Union Minister
Apple selling 'Made in India' iPhones on trial basis
Get LED bulbs, tubelights, ceiling fans at lower rates in petrol pumps !
Xiaomi Redmi Note 4 to Go on Sale Today in India
Artificial intelligence the next big thing, says Microsoft official
Singapore Airlines invests over SGD 100 mn in Indian carrier Vistara
India & UK agree on MoU in urban transport sector
SBI to allow ATM withdrawals via e-wallet
'Adani to decide on investment in Australia coal mine soon'
Dhoni receives Elan Group's luxury apartment
Bad debt situation not that grim, recovery hopes intact: SBI
India's Royal Enfield May Be Looking To Buy Iconic Italian Superbike Maker Ducati!
RBI advises PSBs to have fair system for branch auditor appts
Lanka only leasing out oil tanks to India: Wickremesinghe
KERALA NEWS
'Best Destination for Romance' award goes to Munnar
 (Thiruvananthapuram, May 26, 2017, PTI): Munnar, Kerala's popular hill station with sprawling  
Assembly passes Finance Bill for 2017-18
LDF govt's achievements make UDF & BJP nervous: Pinarayi
'Aksharasagaram' project to give light of letters to elderly women
INTERNATIONAL NEWS
Manchester blast: British police arrest 2 more
 (May 27, 2017, AFP): British police said they arrested two more people during raids Saturday
Masked gunmen kill 28 in attack on Christians in Egypt
91 killed in Sri Lanka floods, India sends relief materials
Donald Trump's son-in-law Kushner under FBI scrutiny in Russia probe: Media reports
NATIONAL NEWS
Blackmoney hoarders fear NDA govt: Amit Shah
 (New Delhi, May 27, 2017, PTI): BJP president Amit Shah today said people with black money "f
Amit Shah opens up about Rajini's BJP entry
Infiltration bid foiled, four militants killed
Modi pays tributes to Nehru on his death anniversary
Untitled Page
Rashtra Deepika LTD
Copyright @ 2017 , Rashtra Deepika Ltd.