The country’s largest lender, the State Bank of India (SBI) has reduced interest on home loans. SBI now offers interest concession of up to 70 basis points (bps) with interest rates starting from 6.70% onwards. (limited period offer ending on 31st March’21). The lender is also giving a 100% waiver on processing fees. The interest concession is based on the loan amount and CIBIL score of the borrower. SBI believes that it is important to extend better rates to customers who maintain good repayment history.
SBI, being the market leader in home finance, takes ownership in bolstering consumer sentiments. The affordability for the consumer increases immensely with the present offerings as the EMI will be reduced.
SBI Home loan interest rates are linked to CIBIL score and start from 6.70% for loans up to Rs 75 lakh and 6.75% for loans above Rs 75 lakh.
Customers can also apply from the ease of their home via YONO App to get additional interest concession of 5 bps. On the eve of International Women’s day, a special 5 bps concession is being made available to the women borrowers.
Saloni Narayan, DMD (Retail Business), SBI said, “Our customers have complete trust in us because of our total transparency. The reduced interest rates are one of the best interest rates in Home Loans anyone can wish for.”
The State Bank of India recently reached a landmark by crossing the ₹5 lakh crore- mark in its home loan business. The bank has set its sight on achieving a home loan AUM of ₹7 lakh crore by FY 2024. The top lender has issued nearly two lakh home loans under Pradhan Mantri Awas Yojana (PMAY) till December 2020.
As of 31 December 2020, the bank has a deposit base of over Rs 35 lakh crore and advances of more than Rs 26 lakh crore with a CASA ratio of about 45%. SBI commands over 34% market share in home loans and around 33% in the auto loans segment.