In a public announcement, the State Bank of India (SBI) declared concession up to 30 bps (basis points) on human loans along with a 100 per cent waiver on the processing fees. In the last decade, SBI has emerged as a leader in the home finance segment with interest rates below 7%, repayment tenure extending to 30 years, and easy application processing based on an applicant’s background.
Additionally, SBI said that the interest rate concession on home loans would be influenced by three major factors namely CIBIL (or credit) score, location of the property, and loan amount. For instance, loans below Rs 30 lakh receive 6.80 per cent interest rate in comparison to 6.95 per cent for a higher loan amount.
Special concession worth 5bps is applicable for women candidates, balance transfers, and any candidate applying via YONO. The SBI app for android and iOS allows the people interested in loans to read in detail about the terms and conditions associated with different types of home loans along with the option to apply for pre-approved top-up home loans.
According to various customers, the YONO app acts as an ideal substitute for reduced paperwork and frequent bank visits. CS Setty, Managing Director of Retail and Digital Banking, SBI, said, “With the nation all geared up to move ahead post-pandemic, SBI would continue to support the home buyers and the Real Estate Sector.”
Previously, in October 2020, the bank had reduced home loan rates to 25 bps for the festive season. Treading on similar lines, experts state that such lucrative offers from government banks play a massive role in instilling consumer confidence towards real estate.
Since the reduced rates are applicable till March 30, 2021, potential homebuyers are expected to showcase stronger interest in upcoming projects across leading metropolitans such as Delhi-NCR, Greater Mumbai, etc.