This festive season SBI has announced various offers for home loan borrowers. With the announcement of these offers, home loans can now be availed at a much lower rate. Only an interest of 6.70 per cent will be levied for any given amount as per the offer announced by SBI.
Earlier, a home borrower with a home loan above Rs 75 Lakh had to pay an interest of 7.15 percent. But with this new offer, home loan can be availed at an interest rate of 6.70 per cent. The 6.70 percent interest rate is applicable to balance transfer cases as well. This reduction will help in saving 45 basis points (bps), which is equivalent to Rs 8 Lakh (for a Rs 75 Lakh loan with a 30-year tenure).
The rate of interest for a salaried borrower was 15 bps less than a non-salaried borrower. SBI has completely removed that disparity between the salaried and non-salaried borrower. Now, they also charge a no-occupation linked interest premium to home loan borrowers, which is supposed to result in a further interest saving of 15 bps to non-salaried borrowers.
According to C S Shetty, Managing Director SBI, the concessional rates are usually applicable for a loan of certain limit, which is also linked to the profession of the homebuyer. However, this time they have made the offers inclusive and available for all segments of homebuyers.
Not just this, they have also waived off the processing fees and have offered an attractive interest concession based on the credit score of the borrower.
SBI is the largest lender in India and these offers can significantly boost the market and revive the economy. With the reduction in the interest rate and a waiver of the processing fee, home ownership could become more affordable which would lead to a spur in sales this festive season.