The country’s top lender State Bank of India (SBI) has reached another landmark by crossing the Rs 5 trillion (5 Lakh crore) mark in its home loan business. The bank has set its sight on achieving home loan Assets Under Management (AUM) of Rs 7 trillion by FY 2024.
Despite a massive setback to the real estate sector triggered by pandemic-induced lockdown, the Real Estate and Housing Business unit (REHBU) of SBI has grown 5 times in the last 10 years with an AUM of Rs 89,000 crore in 2011 to Rs 5 trillion in 2021. The Bank has also launched a facility for new home loan customers who can get all information on home loans by giving a missed call on 7208933140.
“It is a momentous achievement for State Bank of India. This extraordinary feat is a testament to customers’ continuous trust in the Bank. We feel that combining technology with personalized service is the key to the current scenario. The bank is also working on various digital initiatives to improve the efficiencies in home loan delivery including a unique integrated platform Retail Loan Management System (RLMS) which will provide an end-to-end digital solution,” said SBI chairman Dinesh Khara.
Affordable housing for all
SBI is making continuous efforts to make affordable housing conveniently accessible to customers with dreams of owning their desired home. The bank offers home loan customized to suit the requirements of individuals with home loans such as Regular , SBI Privilege for government employees, SBI Shaurya for army and defence personnel, SBI MaxGain, SBI Smart Home, Top-up Loan for existing customers, SBI NRI Home Loan, SBI FlexiPay Home Loan for a loan of the higher amount and SBI HerGhar Home Loan for women.
SBI is also the only bank designated by MoHUA (Ministry of Housing and Urban Development) as the Central Nodal Agency (CNA) for processing Pradhan Mantri Awas Yojana (PMAY) subsidy. To support Govt’s flagship program of ‘Housing for all by 2022’, SBI has been continuously extending loans under PMAY and has sanctioned 1,94,582 loans as of December 2020.
SBI is offering loans at 6.8% without processing fee till March-end
With interest starting as low as 6.80% per annum, SBI commands a market share of 34% in this segment. On average, the bank onboards around 1000 home loan customers per day which signifies SBI’s commitment towards affordable housing. SBI has also completely waived the processing fee till March 2021 for customers availing home loans in SBI approved projects.
Co-lending model for home loans
SBI is gearing up to initiate a co-lending model for home loans which will help boost bank’s footprints in the unorganized sector. The bank is also continuously focusing on strengthening collaboration with builders so that it can offer more choices of homes to home buyers. The bank is consistently ingraining the latest technology into its operational and delivery platforms to make the home loan journey smoother for customers.
SBI forayed into the home loan business in 2004
SBI’s home loan market share has been steadily increasing. SBI forayed into the business in 2004 with a total portfolio of Rs 17000 crore. A separate Real Estate and Housing Business Unit (REHBU) came into being in 2012 with a total portfolio of Rs 1 lakh crore. SBI became the market leader in the home loan segment in FY 2014, and since then has continued to take rapid strides in this business.