Are you State Bank of India (SBI) customer and planning to buy a dream home? Then here's good news for you as India's largest lender SBI is offering home loans at more affordable rates. The SBI home loan rate now starts at 6.95 per cent per annum the second-lowest rate for home loans after Bank of Baroda, which offers home loans from 6.85% onwards.

In the second week of June, SBI had announced a reduction in its external benchmark linked lending rate to 6.65% from 7.05%. The bank had also reduced the marginal cost of funds-based lending rate (MCLR) to 7% from 7.25%.

According to the information available on the SBI website, these rates have come into effect from 1 July 2020. SBI is offering a home loan at an initial rate of 6.95 % per annum to women, 0.05 per cent less than the regular rate. For others, the interest rate starts at 7 per cent per annum.