State Bank of India (SBI), has launched a bouquet of festive offers for home loan customers. The offers are aimed to make home loans more affordable in the festive season. In a first-of-its-kind initiative, SBI offers credit score linked home loans at just 6.70%, irrespective of the loan amount.
SBI offers credit score linked home loans
Earlier a borrower availing of a loan greater than ₹75 lakh, had to pay an interest rate of 7.15%. With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70%. The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs. 8 lakh, for a ₹75 lakh loan with a 30-year tenure.
SBI removes the distinction between salaried and non-salaried home loan borrower
Further, the rate of interest applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower. SBI has removed this distinction between a salaried and a non-salaried borrower. Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers.
To welcome the festivities and boost the market sentiments, the lender has waived off the processing fees completely and offers attractive interest concession based on the credit score of the borrower.
“We are pleased to launch the festive offer for our prospective home loan customers. Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower. This time, we have made the offers more inclusive and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower. The 6.70% home loan offer is also applicable to balance transfer cases. We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable., C.S. Setty, Managing Director (Retail & Digital Banking), SBI said.
State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country which has so far fulfilled the home buying dreams of 30 lakh Indian families. The home loan portfolio of the bank has crossed the milestone of ₹5 lakh crore. As on June 30, 2021, the bank has a deposit base of over ₹ 37 lakh crore with CASA ratio of nearly 46% and advances of more than ₹27 lakh crore. SBI commands a market share of 34.77% and about 31.11% in home loans and auto loans segment respectively.
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