The country’s largest lender, State Bank of India, on Thursday launched a bunch of festive offers for potential home loan clients. The offers aim to make home loans more affordable during the holiday season. In a one-of-a-kind initiative, SBI offers home loans tied to credit score at just 6.70% regardless of the loan amount.
Previously, a borrower with a loan greater than Rs 75 lakh had to pay an interest rate of 7.15%. With the introduction of festive offers, a borrower can now qualify for a home loan for any amount at a rate as low as 6.70%. The offer results in a saving of 45 basis points, which translates into a huge interest savings of over Rs 8 lakh, for a loan of Rs 75 lakh with a term of 30 years.
In addition, the interest rate applicable to a self-employed borrower was 15 basis points higher than the interest rate applicable to a salaried borrower. SBI has removed this distinction between a salaried borrower and a non-salaried borrower. From now on, no interest premium linked to occupancy is charged to potential borrowers of mortgage loans. This would lead to a new interest saving of 15 basis points for non-salaried borrowers.
To accommodate the festivities and boost market sentiment, the lender has completely waived the processing fee and is offering an attractive interest reduction based on the borrower’s credit rating.
CS Setty, Managing Director (Retail & Digital Banking), SBI said: “We are delighted to launch the festive offer for our potential mortgage customers. Generally, concessional interest rates are applicable for a loan up to a certain limit and are also related to the profession of the borrower. This time, we have made the offers more inclusive and the offers are accessible to all segments of borrowers regardless of the amount of the loan and the profession of the borrower.
“The 6.70% mortgage offer is also applicable to cases of balance transfer. We believe zero processing fees and great interest rates during the holiday season will make homeownership more affordable. Our country has shown tremendous resilience during the pandemic. Being the banker of every Indian, we are committed to contributing to the revival of the economy by providing housing for all ”.