The country's top lender SBI has allowed its current home loan borrowers to switch to repo linked interest rate. At present after back to back policy rate, EBR or external benchmark linked home loan rate currently stand in the range of 7-7.35%. And as the interest rates are likely to remain low, customers shall be better off opting for this rate.
How do External Benchmark linked home loan?
For such home loan, interest rate is pegged to the external benchmark i.e. decided by the RBI as the repo rate and any change in the repo rate in the southward direction shall be further beneficial for borrowers.
Also, making the deal further lucrative SBI has changed the reset frequency to six months, implying customers will no longer have to wait for one full year to benefit from the reduction in the interest rate in the economy.
SBI also via a tweet has informed that for borrowers with a higher credit score and for loans above Rs. 30 lakh and less than Rs. 1 crore, may get up to 0.1% rebate. Also, there will be nil processing fee.
And additional discount of 0.5% if the home loan application is made via the SBI Yono app.
How to switch to EBR linked home loan rates?
For this SBI home loan borrowers needs to pay one-time switchover fee together with GST fees.