With the recent policy rate cuts from Reserve Bank of India (RBI), State bank of India (SBI) has cut its home loan rates by 0.05%. This has made SBI home loan cheapest in the market.
The new Home Loan rates from SBI are 9.95% for Loans below 30 lakh and 10.10% for loans of more than Rs. 30 lakh.
Below is the table showing the new EMI per lakh of loan.
Loan Tenure (Years) | Loan upto 30 lakh | Loan above 30 lakh |
30 | 874 | 885 |
25 | 905 | 916 |
20 | 962 | 972 |
15 | 1,072 | 1,081 |
EMI per Lakh |
In case you are paying more for your Home Loan, it makes sense to switch to SBI.
Also Read: How much you can gain by shifting to lower interest rates loans?
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It took me 3 months of running around before the Home Loan was disbursed by SBI. Pathetic service I must say
Hmmm... I hope SBI is reading this and improve on their customer service!
SBI though gives loans at the lowest rate but it takes lot of time and its not customer friendly :(
I think this is SBI's business model. Keep the rates lowest and customers would find a way to get through the bureaucratic system. But if SBI becomes more friendly it would make life difficult for competition!
Totally depends on your risk taking ability and where would you invest in case you don't pre-pay your home loan. If your investment return is more than your loan interest you should invest and in case of opposite you should pre pay your home loan.
You might also want to consider emotional value of closing a home loan :)
I would recommend Floating Loan as the difference between fixed and floating in more than 2% and I don't see floating rate exceeding fixed rates in near future. The second reason is there is no pre-payment penalty for floating loans but some banks charge pre payment of 2% to 3% of outstanding loan in case of prepayment of fixed rate loan.
And the best thing you can always switch lenders in case you feel your bank is not offering the best rates.