SBI freezes home loan rates at 8 per cent for one year

31 January 2009

The State Bank of India (SBI), the country's largest lender, today announced a scheme under which it will keep interest rates on new home loans unchanged at eight per cent for a period of one year.

SBI has introduced a scheme - SBI Lifestyle loan - for its existing customers, under which they can avail eight per cent interest rate for a period of one year.

This facility would, however, be limited to 10 per cent of their home loan exposures and up to a maximum of Rs5 lakh, an SBI release said.

The eight per cent interest rate scheme will be made available to customers who have taken loans during the period 2 February to 30 April  2009, the release said.

SBI said it would revert to the pre-freeze interest rates after the one-year period.

Existing borrowers under the two home loan schemes - loans up to Rs5 lakh and Rs5-20-lakh - would also be offered the eight per cent interest scheme for a period of one year, the bank said.