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SBI, ICICI Bank and PNB cut home loan rates

NEW DELHI: With an eye on increasing their share of loan marketing big cities, three of the country’s largest lenders — State Bank of India, ICICI Bank and Punjab National Bank — have reduced the interest rates charged on home loans.

The country’s biggest lender SBI took the lead by reducing the interest rate on home loans above Rs 75 lakh by 15 basis points to 10.15 per cent. Having done away with the slab system, the bank will now offer home loans at a uniform interest rate. Earlier it had two slabs — a rate of 10.15 per cent for loans of up to Rs 75 lakh and a 10.30 per cent rate for those above Rs 75 lakh. Now onwards, 10.15 per cent will be the uniform rate for all home loans.

Private-sector lender, ICICI Bank, too, has lifted the different interest rate slabs on its home loans. The bank recently started offering loans of up to Rs 5 crore to salaried individuals on a flat interest rate of 10.15 per cent.

Punjab National Bank, the third top bank to have slashed its rate, is now offering home loans of up to Rs 2 crore at 10.25 per cent. For those above Rs 2 crore, customers are to be charged 10.50 per cent. Earlier, the bank charged 10.25 per cent interest for loans of up to Rs 75 lakh and 10.50 per cent for the loans above that amount.