HYDERABAD: Retaining its thrust on the housing loan portfolio, the State Bank of Hyderabad (SBH) on Tuesday, said it would offer home loans at a fixed rate of 8.25 per cent during first year for loans up to Rs 50 lakh. SBH’s revised interest rates is a part of its housing loan campaign and will be effective for the next two months.
The bank will charge 9.25 and 9.5 per cent floating rates of interest during the second and third years for loans up to Rs 50 lakh and above Rs 50 lakh respectively.
“From the fourth year onwards, the rate is linked to the base rate which effectively works out to be 9.75 per cent for loans up to Rs 50 lakh and 10.75 per cent for loans above Rs 50 lakh,” the SBH said in a release. It added that the bank was also offering 50 per cent concession in the processing fee during the campaign period.
SBH reduced its margin to 15 per cent for customers seeking loan up to `75 lakh and 20 per cent margin for above `75 lakh from the previous margin of 20 and 25 per cent respectively.
The bank posted a year-onyear growth of 188 per cent in the housing loan segment and 366 per cent on vehicle loans.