SBI offers new, lower rates to old home loan borrowers

State Owned bank State Bank of India (SBI) has decided to offer lower rates to the old home loan borrowers. The bank has decided to allow these borrowers to switch over to the new floating rates that are lower, said a bank official.

Borrowers who have taken loans linked to SBAR (State Bank Advance Rate or the prime lending rate) are paying as much as 2-3 percentage points more than existing floating rates that are linked to the Base Rate. The current floating rates are 10.5 per cent for loans up to Rs 30 lakh, 10.75 per cent for loans between Rs 30 and 75 lakh, and 11 per cent for loans above Rs 75 lakh.

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