MUMBAI, Feb 1 (Reuters) – State Bank of India (SBI.BO), the country’s largest commercial bank, said it will lower its home loan rates to 8 percent for new customers over the coming year, the second time it has reduced mortgage rates in as many months as the economy slows.
The new rate will be offered between Feb.2 and April 30, 2009, the bank said in a statement.
SBI had previously charged 9.75 percent on a floating basis for home loans, and 11.25-12.25 percent on a fixed basis.
Under a special scheme announced in December, it rolled rates back to 8.5-9.25 percent for loans up to 2 million Indian rupees ($41,000).
Private sector banks charge between 9.75 percent and 12.50 percent interest on home loans.
The central bank has aggressively cut its policy rates since mid-October as demand weakened across sectors from housing to automobiles.
The repo rate, at which the central bank lends to commercial banks, has been cut by 350 basis points to 5.5 percent over the past three months.
But the central bank left key policy rates unchanged at a review last week.
Source: uk.reuters.com
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