Festive Cheer: SBI To Offer Cheaper Loans, Processing Fee Waiver
With an aim to give a boost to buyer sentiments amid the upcoming festive season, public lender State Bank of India (SBI) will charge no processing fee on home loans.
Typically, a borrower could be asked to pay 25 basis points* to 200 basis points of the loan amount, as the processing fee. Depending on the bank from where you are applying for the home loan, you may also be asked to pay a flat fee as the processing charge on the credit request.
The country’s largest bank has also decided to offer lower interest of up to 10 basis points, to homebuyers with good credit scores. An additional interest concession of five basis points is also available to borrowers, who apply for the home loan through SBI’s unified integrated app, YONO (You Need Only One).
However, these discounts will be available to borrower only if they select a housing projects that is listed as an approved project with the bank.
“There would be a complete waiver on processing fees on home loans, for homebuyers in approved projects. The bank is also providing special concessions of up to 10 bps on the interest rate for the customers, based on their credit score and loan amount. Additionally, homebuyers can avail 5 bps interest concession if they apply for a home loan via YONO,” the bank said in a statement. While borrowers could apply for the home loan through the app, they will have to visit an SBI branch for getting an approval for the same.
Currently, SBI, which has a 34% market share in the housing finance segment in India, charges 7% interest on home loans of up to 30 lakhs from salaried individuals. If a borrower is able to avail of the festive benefit, they will be eligible to get this housing loan at 6.90% interest.
On home loans of Rs 31 lakhs to Rs 75 lakhs, SBI charges an interest of 7.25%. With the festive offer, the interest on this loan amount could be brought down to 7.10%, if a borrower has a good credit score and applies for the loan through YONO. For home loans of over Rs 75 lakhs, the lender charges an annual interest of 7.35%.
Note: *A 100 basis points is equal to one percentage point.