SBI Rolls Out “Hamara Ghar” Home Loans


In an effort to propel home loans, State Bank of India (SBI) on Monday hovered an attractive scheme offering fixed rate of interest for the first two years at 8.55%  for men and 8.5%  for women. The country’s largest lending bank reduced the floating interest rate from 9.15%  to 8.6%  for home loans up to the amount of Rs 75 lakh and to 8.65% for the higher amount. A teaser loan is the one where the lender bank offers a slightly lower rate of interest in the initial years and then charges higher rate of interest in later years.
Under this SBI’s new loan offer Hamara Ghar, once the fixed term of two years finishes, the interest rate on the home loan will be linked to the prevailing one-year marginal cost of funds based lending rate (MCLR). The spread on the home loan at that time will remain the same as the current interest spread over the MCLR, which is of 50 basis points.
In 2008, SBI, under the leadership of O P Bhatt as chairman, had floated a teaser home loan scheme, which was withdrawn in May 2011 after memorandums from the RBI. Under this scheme, SBI was offering lower interest rates of 8 to 8.5%  for the first three years.
The scheme was launched to spur demand and avert any adverse effect of global financial crisis of 2008 on credit card demand thus affecting Indian economy.

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