SBI Home Loan: It's official! The SBI home loan has become cheaper from Septermber 1, which was Sunday and people can't apply on Sunday as it's a holiday, the SBI home loan has finally become cheaper from today. From today, SBI home loan interest rate would be 0.2 per cent cheaper than it was on Saturday because India's largest commercial bank has cut down its interest rates from 8.25 per cent to 8.05 per cent from 1st September 2019. This delay would lead to lower home loan EMI providing some benefit to the home buyers.

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Source: SBI Home Loan Calculator

Recently, SBI has reduced MCLR by 15 bps due to which overall home loan interest rate is now reduced by 35 bps since April 2019. From today, SBI has become India's bank that offers the cheapest home loan with an interest rate of 8.05 per cent as repo rate linked home loan and this rate will be applicable to all existing and new loan from 1st September.

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So, in current circumstances, if a person goes for SBI home loan of Rs 25 lakh for a tenure of 20 years, his or her monthly EMI would be Rs 21,302, while he will have to pay Rs 26,12,394 as interest during the loan period. However, if the loan applicant delays his or her SBI home loan application to September 1st, his or her monthly home loan EMI would be Rs 20,989 while he or she would pay Rs 25,37,327 as home loan interest during the home loan period. So, if the person delays her or his SBI home loan application to September 1, he or she would pay Rs 313 lesser in monthly home loan EMI. This will would lead to saving Rs 75,067 in home loan interest payments!

Source: SBI Home Loan Calculator

Hence, a home loan applicant is advised to check whether the bank they are knowcking at has provisions to provide home loans and other retail loans at RLLP (Repo Linked Lending Pattern). If not, then they are knocking at the wrong bank and may end up bleeding money from their pockets in the name of EMI.