The State Bank of India has reduced its interest rates on home loans by up to 10 basis points, with loans now starting from 6.70 per cent.

The new rates are based on the loan amount and the credit score of the borrower and are available till March 31, the country’s largest lender said in a statement on Monday.

SBI said the rates will start from 6.70 per cent for loans up to Rs 75 lakh and 6.75 per cent for loans in the range of Rs 75 lakh to Rs 5 crore. The bank is also offering a 100 per cent waiver on its processing fees.

According to Saloni Narayan, deputy managing director (retail business), SBI, the reduced rates are one of the best in the segment. The lender expects a good response, this being the last month of the year. Narayan, however, does not expect any rise in bad loans.

Customers can also apply for the loans using SBI's Yono app to get an additional interest concession of five basis points. SBI is also offering a special five basis points concession to woman borrowers on the eve of International Women's Day.

“We are mindful of whatever stresses are there and we are reaching out to the customers... We are taking several steps within and outside the bank and also giving options to borrowers on how they can repay the loans. We are monitoring closely and, as of now, I don’t see much of a challenge,” a PTI report quoting Narayan said.

SBI had recently said the size of its real estate and housing business unit (REHBU) has touched Rs 5 lakh crore.

The bank is looking to double this number to Rs 10 lakh crore over the next five years.

SBI had entered the home loan segment in 2004. The bank says it now has a market share of 34 per cent.