State Bank of India (SBI) is considering a downard revision of interest rates on home loans. Talking to FE, chief general manager of the bank, Sangeet Shukla, said that ?Discussions are on and a final decision will be taken in a week’s time?. However, he did not quantify the extent of the rate-cut.
Keeping in view the slowdown on the home loan disbursements, a few banks like HDFC, Bank of Baroda and Allahabad Bank recently slashed interest rates on home loans by 25-100 basis points. The average home loan rate stands at 11%. SBI floating rate on home loans is 11.25% for 20 years.
Chairman and managing director of Canara Bank, MBN Rao, ruled out any cut in home loan rates. ?The rate offered by us is the lowest in the industry and I don?t see the need to further reduce it,” he said.