SBI’s Home Loan Rate Tweak: Existing Customers Stand to Benefit

By Hemanth | October 5, 2015


For the State Bank of India (SBI), the market leader in the home loans segment, old certainly seems to be gold.

That is, old customers are gold.

Nothing else explains the latest rate tweak by the leading lender, which has kept home loan spreads unchanged for existing borrowers but has increased the same for new customers.

Earlier, immediately following the RBI’s repo rate cut of 0.5% on Sep 29th, SBI had pared its base rate by 0.4% to 9.3%. Naturally, prospective borrowers were agog with excitement.

Additional Reading: RBI Cuts Repo Rate by 0.5%: What This Means For You

In its latest circular dated Oct 3rd, women borrowers (new customers) will now need to fork out 0.2%  over and above the base rate – an effective lending rate of 9.5%. Earlier, women borrowers were charged only the base rate, which continues to be the case for existing women borrowers.

Similarly, regular borrowers (new customers) will now be charged 0.25% over and above the base rate. With base rate being 9.3%, their effective base rate will now be 9.55%. Earlier, they were being charged 0.05% over and above the previous base rate of 0.7%, leading to an effective rate of 9.75%.

With this 2-steps-forward-1-step-back approach, the net reduction in home loan rates by one of the leading lenders of the country is 0.2% for their flagship product.

There are indications that other leading lenders might take the cue in resetting their own home loan rates.


YOU MAY ALSO WANT TO: Check your home loan EMI using our Home Loan EMI Calculator.



All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit for the latest rates/offers.
Category: Home Loans News Yahoo Tags: , , , ,

About Hemanth G

Hemanth is Editorial Head of Content Research at BankBazaar. A published author with Westland Publishers, Hemanth is an alumnus of Indian Institute of Management Calcutta and has been a senior management professional for over a decade and a half, with deep experience in business strategy and marketing and a specialization in Advanced Finance from AIMA. Five years and a day ago, he started writing in a professional capacity, and has since penned seven books including two bestsellers. Also a consulting editor, his works include fiction novels, international anthologies and corporate biographies. Hemanth writes under the pseudonym of "Hemanth Gorur".

Leave a Reply

Your email address will not be published. Required fields are marked *