After SBI, private banks slash lending rates: Here is how it affects you

After State Bank of India, multiple private sector banks slashed interest rates on Monday as a surge in deposits following the ban on high-value bank notes sparked a race among the country’s lenders to woo consumers with cheaper home and vehicle loans.

After State Bank of India, multiple private sector banks slashed interest rates on Monday as a surge in deposits following the ban on high-value bank notes sparked a race among the country’s lenders to woo consumers with cheaper home and vehicle loans.

Home loans EMIs are about to get slightly cheaper.

The marginal cost of funding-based lending rates (MCLR) ranges from 0.90% (SBI) to 0.40% (IDBI Bank).

Here is how this affects you:

State Bank of India

- On a Home Loan of Rs. 20 lakh for 20 years, the EMI of a borrower is reduced by about Rs 835 per month (EMI down to Rs 17,546 from Rs 18,382) thereby saving Rs 10,025 per year.

- On a Home Loan of Rs. 50 lakh for 20 years, the EMI of a borrower is reduced by about Rs 2088 per month (EMI down to Rs 43,867 from Rs 45,955) thereby saving Rs 25,060 per year.

- On a home loan of Rs 75 lakh for 20 years, the EMI of a borrower is reduced by about Rs 2401 per month thereby saving Rs 28,812 per year.

IDBI Bank

- On a Home Loan of Rs. 20 lakh for 20 years, the EMI of a borrower is reduced by about Rs 518 per month (EMI down to Rs 18,059 from Rs 18,577) thereby saving Rs 6,216 per year.

- On a Home Loan of Rs. 50 lakh for 20 years, the EMI of a borrower is reduced by about Rs 1,296 per month (EMI down to Rs 45,147 from Rs 46,443) thereby saving Rs 15,552 per year.

- On a Home Loan of Rs. 75 lakh for 20 years, the EMI of a borrower is reduced by about Rs 1,944 per month (EMI down to Rs 67,721 from Rs 69,665) thereby saving Rs 23,328 per year.

With inputs from Suchetana Ray.