personal finance

Festive bonanza: SBI announces home loans at 6.70% irrespective of the loan amount

MUMBAI: The country’s largest lender on Thursday launched festive home loan scheme where borrowers can avail loans at 6.70% irrespective of loan amount. Earlier a borrower availing a loan greater than Rs. 75 lakh, had to pay an interest rate of 7.15%.

With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70%. The 6.70% home loan offer is also applicable to balance transfer cases.

The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs. 8 lakh, for a Rs. 75 lac loan with a 30 year tenure, SBI said.

SBI has removed this distinction between a salaried and a non-salaried borrower. Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers.

“The concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower,” said C.S. Setty, Managing Director (Retail & Digital Banking). “This time, we have made the offers more inclusive and the offers are available to all segments of borrowers irrespective of the loan amount and the profession of the borrower.”

To lender has also waived off the processing fees on home loans.

“We believe zero processing fees and concessional interest rates in the festive season will make homeownership more affordable,” Setty said.


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