Скачать или смотреть Latest info reg SBI Home Loan Interest Rates|4 important things you need to know|Awareness Video

SBI Home loan interest rates latest update as on September 2020. This is an awareness video for the general public about the new changes in the interest rates and its calculation in the future.

As mentioned in the video, here are the links for the German studies video.

Episode 1
   • How To Apply for Masters in Germany|Practi...  

Episode 2
   • 8 Things to know before studying in German...  

The method of fixing the interest rates have changed. Earlier the floating rate interest rates were based on MCLR (Marginal Cost of funding based Lending Rate). MCLR is a rate fixed by the bank below which it cannot lend. From around 8.5% it has reduced approximately to 7.85% these days. 

MCLR Vs EBR
The reset period for MCLR is 6 months and it is 3 months for EBR. The benefit will be percolated to the public quickly in EBR compared to MCLR. Further, the basic concept for a stronger economy is keeping everything market linked. So going forward the loans also will be market linked indirectly. It is in a long run very good for the economy.

Henceforth, according to RBI guidelines SBI will be using the EBR (External Benchmark based lending Rate) to calculate the floating rate home loan interest rates. There are three external benchmarks in our country. However, SBI has chosen REPO rate which is one of the three external benchmarks. 
Repo rate is the rate at which banks borrow money from RBI. Moving forward SBI home loans will be based on the Repo Rate.
RBI is the authority to fix the repo rate. In it's bimonthly policy statement it'll announce the repo rates. At present the Repo Rate in our country is 4%. 
If there is surplus money in the economy, to suck the surplus money the repo rate will be increased. And vice versa. So henceforth, SBI home loan rates will be based on the repo rate.
The calculation of the SBI home loan interest rate will be something like this.
Repo Rate+Spread+Premium based on loan amount = 4%+2.65%+0.35% 
This is an example for loans less than 30 lakh, salaried employees with good cibil score etc.
New rates will be automatically applicable to the new home loan customers. However, the existing home loan borrowers will be eligible to switch over their loan interest rates to New rates based on certain conditions like good repayment record etc.

You need to approach your home loan SBI branch and request the bank to change to New Interest rates. The bank will be giving you this service by charging a one time fee of Rs. 5000/- + GST.