State Bank of India (SBI), India's largest bank now offers to provide loans to all new home buyers at a fixed rate of 8%, the lowest rate offered by any lender!!

This rate will be applicable to all new borrowers irrespective of the loan amount.
All customers of SBI who have already taken a loan under a special scheme, featuring an interest rate of 8.5% for a Rs 5 lakh loan and 9.25% for a Rs 20 lakh loan, will also benefit under the new offer However, the fixed rate of 8% on home loans will be effective for only one year.Existing customers of SBI can also avail of a home loan at 8%. They can borrow up to 10% of their exposure subject to a cap of Rs 5 lakh at 8%.
This move is aimed at stimulating demand in the home loan market.

SBI will also charge them 8% for one year on their borrowings. After one year, these borrowers will have to pay the earlier contracted rate which in the case of special scheme borrowers will be 8.5% for loans up to Rs 5 lakh and 9.25% for loans up to Rs 20 lakh.For those who borrow above Rs 20 lakh, SBI will charge the prevailing home loan rate. SBI has said the offer is applicable only up to April 30, 2009.

With this, SBI will be offering the lowest interest rate on home loans. This also means that new borrowers who would otherwise have paid an interest rate of 10.75% for loans between Rs 30 lakh and Rs 75 lakh will now be charged only 8%, which will be on a fixed rate basis for one year.

Some senior bankers said the demand for home loans will pickup only after builders cut rates. “A borrower would first take into consideration the price of the flat and than look at the interest rates. If they feel that the property is over-priced, they will not borrow just because interest rates are low,” said an official in a state-owned bank who heads the credit portfolio.

So, make the best of this offer. You can now go and purchase your dream home today!!