SBI to keep the interest rates on home loans unchanged till March 31, 2010

SBI's My Home Campaign:

Under the SBI’s scheme, loans up to Rs 5 lakh with a maximum tenor of 10 years carries a fixed rate of 8 per cent for 5 years.

Loans above Rs 5 lakh and up to Rs 50 lakh carries fixed interest rate of 8 per cent pa during first year and 8.5 per cent pa (fixed) during the 2nd and 3rd year of the loan.

Customers looking for high-end properties can take SBI Advantage Home Loan which carries fixed interest rate of 8 per cent pa during first year and 9 per cent pa during the 2nd and 3rd year.

With the SBI extending the package for another five months, other public sector banks are likely to follow suit.

Another reason for the SBI move to keep the home loan rates is the intense competition in the segment.

Private sector lender Axis Bank on Thursday introduced a special home loan scheme with a lower interest rate of 8 per cent for a limited period.

To read more, please, Indian Express

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SBI cuts rates by 0.25% across the board

The country's largest bank, State Bank of India, has taken deposit rates to a new low

It cut rates across the board by 0.25%.

The latest rate cut is SBI’s second time this month and the sixth time this year.

SBI may be cutting rates because it getting more deposits than it is dispensing loans.

Data from the Reserve Bank of India shows that deposits this year have grown by 20% as opposed to credit, which has grown at 13%.

In order to maintain the margin, SBI would have been forced to push down deposit rates.
To read more, please, visit CNBC-TV18

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SBI improves its home loan offer

Offers to fix rates in second, third year of loan:

State Bank of India (SBI), the country’s largest lender, today said that it had improved upon its home loan scheme and would offer home loans starting at 8 per cent in the first year before rising 100-150 basis points in the second and third years. Earlier, SBI had only fixed interest rates during the first year of the tenure of the loan.

In addition, the bank has offered to levy interest on a reducing balance basis and has waived the processing fee for home loans taken up to September.

SBI, which became the largest home loan originator in 2008-09, said it had floated two schemes — Easy Home Loan and Advantage Home Loan.

Under Easy Home Loan, for those borrowing under Rs 30 lakh, the rate has been fixed at 8 per cent during the first year and would be increased 100 basis points to ,9 per cent and fixed at that level during the second and third years.

From the fourth year onwards, the customer could choose between the floating rate option, for which the rate is 200 basis points below the State Bank Advance Rate (SBAR), and fixed rate which is 100 basis points below SBAR, with a five-year reset. At present, SBAR is at 11.75 per cent.

For a 20-year loan, the Equated Monthly Installment (EMI) during the first year would be Rs 836 per lakh and would rise to Rs 898 per lakh over the next two years.
To read more, please, visit - Businss Standard

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SBI’s low loan rates no threat to HDFC - Edelweiss Securities

SBI: 9.92% whereas HDFC: 9.97%

State Bank of India’s special concessional home loan rate of eight per cent may not prove a real threat to housing loan market leader HDFC, which still offers borrowers a lower overall interest cost, analysts believe.

Analysing the cost benefits offered by the public sector lender’s special home loan rate for the borrowers and the competition it poses to HDFC, equity analysts at brokerage firm Edelweiss Securities in a report said that the scheme would not be “a material threat to HDFC.”

While short-term interest savings offered by SBI is “more or less offset by HDFC’s competitive edge” on factors like ease and quality of service and process time, the average interest rate for the full tenure of the loan also works out to be lower in case of HDFC, they noted.

Under SBI’s special scheme, the rate would be fixed at 8% for the first year, while it would increase to 10.25% from the second year for loans up to Rs30 lakh and to 10.75% for loans bigger than Rs30 lakh.

This would give an average rate of 9.92% for loans up to Rs30 lakh with a repayment period of 20 years, as against HDFC’s prevailing lending rate of 9.97% for a similar loan, Edelweiss said.

When contacted by PTI, SBI officials did not respond to the queries on issues raised in the report.
livemint.com

Related Stories:

1) Deepak Parekh to head HDFC till December 2009

2) Correction in real estate is bound to come - Deepak Parekh, Chairman, HDFC

HDFC or SBI?

Short-term interest savings or competitive edge? SBI or HDFC? What you value most? Please, share your views in the comments. (Comments Policy),

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To kick-start demand in the real estate sector, SBI cuts floating home loan rates to 8% for 1 year, on new loans, irrespective of the loan amount!

12-week offer: Opens today. Closes on April 30!

"Why only RBI and Indian real estate developers should have all the fun? Home buyers! come on, let us play home loan game !" says State Bank of India

Just drop the damn EMI!

# The EMI on a Rs 30-lakh loan for 20 years will fall by 15%

# EMI on a Rs 50-lakh loan will fall by 18%.

# The maximum benefit will accrue on home loan amounts of over Rs 75 lakh, where the interest rate comes down by 3 percentage points from 11% to 8%.

# The cut will benefit those who have borrowed under the special scheme announced by the Indian Banks' Association (IBA) in December. Under that scheme, the interest rate on home loans up to Rs 5 lakh was fixed at 8.5% and for those between Rs 5 lakh and Rs 20 lakh at 9.25%.

SBI Lifestyle Loan: Get Rs 5 lakh, at 8% interest, for 1 year and have fun!

For existing borrowers, SBI has offered a new personal loan scheme entitled `SBI Lifestyle Loan'. Under this, they can get a multipurpose loan of up to 10% of their home loan, subject to a maximum of Rs 5 lakh, at 8% interest. However, this loan will have to be repaid in one year.

Don't listen to any sad banker!

Some bankers, on condition of anonymity, argued that it was a smart move by SBI. Interest rates, they said, were likely to fall even lower by March-April and the country's biggest bank was, in fact, hoping to lock in borrowers at 8% for a year before that happened, they said.
To read more, please, visit - Prabhakar Sinha-The Times of India

Boys and Girls, Are you ready to play?

Take it easy! Stop complaining about property rates. This is an election year!! When officiating finance minister and RBI does't bother about deficit, why are you all worried about paying EMI? Just forget about it. Start your engine, go to the site office and buy under construction property and stimulate the economy or we will kick your ass!

Boys and girls, are you ready to play the game? Please, share your views in the comments. (Comments Policy)

Feel free to call me:

I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 5 minutes!) Call +91 98600 44110

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Satyam fiasco restores credibility of Public sector banks

Due to the Satyam fiasco, Infosys, a rival company, decided to be extra transparent in its latest quarterly disclosure .

We learn from Infosys that it has Rs 7,419 crore in cash, of which two-thirds is in public sector banks, like State Bank of India, Punjab National Bank, Bank Of Baroda and Syndicate Bank.

SBI alone has more than Rs 2000 crore. An unintended impact of subprime is a renewed belief on the safety of public sector banks.

The great nationwide rush of deposits into public sector banks will help them increase lending to needy sectors.

Even the once reviled concept of priority sector lending is coming back. That’s the euphemism used by many sectors asking for bailouts and subsidised loans.
To read more, please, visit - Economic Crisis & Satyam Saga : Boon or Bane for India

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SBI makes its home, auto loans cheaper

In a dose of relief to millions of existing and prospective borrowers, country's largest bank SBI today announced a 75-basis point cut in its prime lending rate which will make its home, auto and other loans cheaper.

Will be applicable to all existing and new floating rate loans

Will be effective from January 1

0.25-1 per cent reduction in its deposit rates across various maturities
To read more, please, visit - The Hindu