The State Bank of India (SBI) on Saturday said it has waived the processing fee on home loans till August-end.

At present, the processing fee on home loans is 0.40 per cent while it stands at 50-100 basis points of the loan amount for most of the other lenders.

The latest relaxation is part of its limited period “Monsoon Dhamaka Offer”. The country’s largest lender claimed that in availing the scheme, a home loan customer can gain substantially and that it will also help revive consumer sentiments.

“There could not be a better time to buy a house, considering SBI home loan interest rates start at just 6.70 per cent,” SBI said in a statement. The Monsoon Dhamaka Offer is for a limited period ending August 31, 2021, it added.

Observers said the offer was another attempt by the state-owned lender to improve its market share in the competitive home loan segment, particularly at a time credit to industry is sluggish.

The SBI’s move comes ahead of the three-day monetary policy committee meeting that is set to begin on August 4.

However, the RBI is largely expected to retain the policy rate and its accommodative stance given the patchy economic recovery.

“This offer of processing fee waiver will facilitate and encourage home buyers to take a decision with ease, as the interest rate is at its historic low. We strive to be a banker to every Indian and, thereby, be partners in nation building,” C.S. Setty, MD (retail and digital banking), SBI, said.

There will be a concession of five basis points for home loans applied through the bank’s YONO app. Women borrowers will also be eligible for a concession of five basis points on the card rate which starts from 6.80 per cent.

Data from the central bank on the sectoral deployment of bank credit showed credit growth to industry contracted 0.3 per cent in June 2021 from a 2.2 per cent growth in June last year. Housing loans showed a rise of 9.8 per cent.