The cut in interest rate on home loans, with effect from Monday, is higher than the reduction of 0.15 percent in base rate that came into force on April 10.

The bank said in a statement that the home loan rate stood at 10.1 per cent for women borrowers prior to the reduction in base rate. It will now be 9.85 percent.

For other borrowers, the new rate is 9.9 percent, down from 10.15 percent before base rate cut.

The rates will be applicable for all new home loans sanctioned on or after April 13, SBI said.

The SBI announcement comes two days after HDFC Ltd, the country's largest mortgage firm, reduced home loan rate by 0.2 percent to 9.9 percent for new as well as existing borrowers.

As of December, 2014, SBI had outstanding housing loan of Rs 1,52,905 crore as against Rs 1,35,129 crore at the end of third quarter of the previous fiscal registering a growth of 13.15 per cent.

HDFC Ltd had a loan book grew to Rs 2,19,951 crore at the end of last year as against 1,92,284 crore as at December 31, 2013.

SBI said, "Interest rate on the bank's home loans was 10.10 percent for Women under 'HER Ghar' and 10.15 percent for others."

The bank reduced base rate to 9.85 percent effective April 10 following loans linked to base rate including housing were reduced.

"We have decided to cut the spread by an additional 0.10 per cent today for new borrowers," SBI chief general manager for real estate, habitat and housing development, J Lakshmi said.

Women borrowers should be sole applicants or first of the co-applicants and also the sole/ first co-owners of the property to avail of the benefit extended to them, it said.

Interest Rate for SBI existing floating rate home loan borrowers has also been reduced to the extent of reduction in the bank's base rate to 9.85 percent effective April 10.

The revised EMI per lakh for a loan tenure of 30 years will be Rs 867 (for women under HER Ghar) and Rs 871 (for others) as against Rs 885 and Rs 889 respectively, prior to reduction in base rate, it added.

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