19
Friday
January 2018
7:22 AM 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


HSBC InvestDirect Securities settles case with Sebi
SBI to raise Rs 20,000 cr for affordable housing, infra
Sensex hits 35,000 mark as IT stocks lead gains
Bitcoin, other cryptocurrencies tumble on government crackdown worries
Sensex, Nifty extend gains to hit fresh highs
Passport may no longer serve as address proof
Rupee extends losses against US dollar in late morning trade
Stocks scale fresh record high as Coal India spurts
Sensex at new high on fund inflows; Nifty above 10,600
CBDT relaxes norms for MAT on firms facing insolvency
Indian ports set to double their profit: Gadkari
Sensex, Nifty hit new record high on fund inflows
Gold strengthens on sustained demand, silver recovers
Govt extends compulsory jute packaging for foodgrains, sugar
Sensex succumbs to late sell-off; auto, IT slip
Anti-dumping duty likely on Chinese chemical imports
Rs 39 lakh cr needed for infra in urban areas until 2032: Puri
Sensex trade flat, marginally up 9 points in late morning
Sensex advances 30 points; rupee gains 15 paise vs USD
Mukesh Ambani’s Reliance Jio to acquire mobile business assets of Anil Ambani’s RCom
KERALA NEWS
One killed in bike - bus collision at Thiruvananthapuram
 (Thiruvananthapuram, Jan 18, 2018, DG): One person lost life in an accident at Ambalathinkara  
New team to probe Chandy case
NIA registers case against ISIS members from Kannur
I killed my son single handedly, claims mom
INTERNATIONAL NEWS
52 people killed in Kazakhstan bus fire
 (Astana, Jan 18, 2018):Fifty-two people were killed today when the Russia-bound bus they were
No action can be taken against Hafiz Saeed: Pakistan PM
Trump reveals 'Fake News' award winners
N Korea agrees to send 550-member delegation to Winter
NATIONAL NEWS
Shiv Sena asks Modi, Shah to clarify Togadia's claims
 (Mumbai, Jan 18, 2018): The Shiv Sena today latched on to VHP leader Pravin Togadia's claim o
SC intervenes, 'Padmavat' for nation wide release
India successfully test-fires Agni-5 ballistic missile
CJI meets four senior-most SC judges
Untitled Page
Rashtra Deepika LTD
Copyright @ 2017 , Rashtra Deepika Ltd.