The State Bank of India cut its home loan rates by announcing a three-month-long 'SBI My Home Campaign' . In SBI's home loan scheme, interest rate for the first year is 8%, and for the next two years is 8.5% to 9% depending on size of the loan. It is linked with benchmark lending rates.

However, the chairman of HDFC, Deepak Parekh, criticised the lending institutions like SBI, which gives home loan at differential rates - low rates for the earlier period and raising it later. Parekh warned that such artificial lower rates could lead to a sub prime-like crisis, which happened in US housing market.

Times of India