The State Bank of India has launched an array of festive offers for prospective home loan buyers with the objective of making home loans more affordable in the festival season. In a unique initiative, the SBI is offering credit score-linked home loans at just 6.70%, irrespective of the loan amount.
Earlier a borrower availing a loan greater than Rs 75 lakh had to pay an interest of 7.15% as against availing home loans for any amount at a rate as low as 6.70% in the festival offer, which helps a saving of 45 bps leading to a huge interest savings to the tune of Rs 8 lakh on a loan of Rs 75 lakh with a 30-year tenure. Further, the rate of interest applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower. 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 for non-salaried borrowers. The lender has waived off the processing fees completely and offers attractive interest concession based on the credit score of the borrower.
Commenting on the same, C S Setty, Managing Director (Retail & Digital Banking), SBI, said, “We are pleased to launch the festive offer for our prospective home loan customers. Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession of the borrower. 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. The 6.70% home loan offer is also applicable to balance transfer cases. We believe zero processing fees and concessional interest rates in the festive season will make home ownership more affordable.”
