NEW DELHI: Public sector lender State Bank of India (SBI) has raised the concessions on its home loan interest rates, a press release issued by the bank stated. It is offering home loan interest rate starting at 6.8 per cent for loan amount up to Rs 30 lakh and 6.95 per cent for loan amount above Rs 30 lakh depending on CIBIL score.
According to an official statement, the bank is offering discount up to 0.3 per cent on home loan interest rates based on the loan amount and CIBIL score. Interest concession up to 0.30 per cent is also available in eight metro cities for loans up to Rs 5 crore. Women borrowers will get further concession of 0.05 per cent in home loan interest rate from the bank.
The country’s largest bank is also offering 100 per cent waiver on processing fees, 0.05 per cent concession on balance transfer and 0.05 per cent discount on digitally sourced home loans. “SBI has sweetened their past offers and now provides higher interest concession based on loan amount, the creditworthiness of the borrowers and the location of the property,” SBI added.
In October 2020, the state-run bank announced concession in home loan rates by as high as 25 bps. An additional 5 bps concession for all home loans was given if applied through YONO app. That apart, the bank had also announced a slew of special offers for its retail customers with 100 per cent processing fee waiver on car, gold, personal loans.
SBI commands nearly 34 per cent market share in home loans and 33 per cent in auto loans segment.
“We are pleased to improve our concessions to prospective home loan customers up to March 2021. With SBI’s lowest interest on home loans, we believe this move will facilitate and encourage home buyers to take the home buying decision with confidence,” said CS Setty, MD (Retail & Digital Banking), SBI.
Rise in enquiries
Driven by low interest rates and stamp duty cuts, home-loan enquiries are seeing an uptick, TransUnion Cibil said in a recent report. Inquiry volumes for home loans rose 9.1 per cent in November 2020 over the previous year.