The State Bank of India (SBI) on Wednesday announced a concession of up to 25 basis points on its home loan rates in another festive offer to lure borrowers.
The country’s largest lender said customers will get this interest concession on loans above Rs 75 lakh based on their Cibil score and only if they are applying through the digital lending platform YONO.
In an extension of its festive offers announced recently, SBI will provide a credit score based concessions of up to 20 basis points, up from 10 basis points earlier, for a home loan of above Rs 30 lakh to Rs 2 crore across the country .
This concession will also be applicable for a loan amount of up to Rs 3 crore in eight metro cities. An additional 5 basis points concession is there for all home loans if applied through YONO.
SBI now offers interest rates starting as low as 6.90 per cent for a home loan of up to Rs 30 lakh and 7 per cent for above Rs 30 lakh.
“With SBI’s lowest interest on home loans, we believe this move will facilitate and encourage home buyers to plan their dream house. With the nation all geared up to the post-Covid era, we are witnessing increased customer demands and we at SBI will continue to offer lucrative benefits for our customers, managing director (retail and digital banking)” C.S. Setty said.
Last month, the bank rolled out a slew of festive offers for its retail borrowers, including a 100 per cent waiver on processing fee for all customers applying for a car, gold, and personal loans through YONO.
Several banks have in the recent weeks announced various festival offers as they look to ramp up retail lending amid indications of economic recovery from the lows seen earlier because of the pandemic.
Recently, Kotak Mahindra Bank had reduced its interest rate on home loans to 7 per cent. It also announced other offers, including loan processing fees waivers and faster online approvals on retail and agricultural loan products as part of the festive offers christened as ‘Khushi Ka Season’.
The lender has said that home loans will start at 7 per cent per annum and that savings of up to Rs 20 lakh can accrue on balance transfer cases. Similarly, Axis Bank announced home loans at an interest rate of 6.90 per cent.
