Earlier the lender had reduced the rates by up to 10 basis points (bps) on home loans of up to 75 lakh. Under this scheme, the interest rate charged was 10.15 percent or 15 bps over the base rate for salaried individual. For the same amount, self-employed individuals were being charged 10.25 per cent. For loans above 75 lakh, the bank was charging interest at the rate of 10.50-11.25 per cent.

Third bank in the list, the Punjab National Bank, , is now offering home loans of up to 2 crore at 10.25 per cent. For those above 2 crore, customers are to be charged 10.50 per cent. Earlier, the bank charged 10.25 per cent interest for loans of up to 75 lakh and 10.50 per cent for the loans above that amount.

A senior SBI executive said the bank had revised its rate and structure because of growing competition, as some lenders were offering lower rates on loans of 75 Lakh and above. “We want to increase market share in loans of higher amounts. There is a huge market for such borrowings in large cities. At present, SBI leads the market in the sub-Rs 30 lakh loan category,” the official added.

Competitors like home financing firm HDFC charge between 10.15 per cent and 10.65 per cent for salaried and self-employed professionals. These rates, charged irrespective of the loan amount, were offered under a monsoon bonanza scheme and were to end on August 31. But now, the same rates are likely to be converted into a festive-season offer.