“This offer results in savings of 45 bps, which translates to huge interest savings of over Rs 8 lakh for a loan of Rs 75 lakh with a tenure of 30 years,” the press release said.
Further, the interest rate applicable to a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower. SBI has said that it has removed this distinction between salaried and non-salaried borrowers. “Now, no business-linked interest premium is being charged from prospective home loan borrowers. This will result in further interest savings of 15 bps to non-salaried borrowers,” the bank said.
The lender has also completely waived the processing fee and will offer attractive interest concession based on the credit score of the borrower.
“This time, we have made the offers more inclusive and the offers are available to all sections of borrowers, irrespective of the loan amount and profession of the borrower. The 6.70% home loan offer is applicable to balance transfer cases as well. We Assuming zero processing fee and concessional interest rates in the festive season will make home ownership more affordable,” said CS Setty, Managing Director (Retail & Digital Banking), SBI.
“The latest ANAROCK research shows that currently the highest demand is in the premium segment, where properties are priced at Rs 80 lakh and above. This is mainly a result of homes which are now in the form of offices and e-learning centres. This lending rate will also not restrict which cities will benefit from it – In the past concessional rates limited to budget housing, only Tier 2 and Tier 3 cities can really benefit. With this democratic interest rate, SBI also addresses the huge demand for housing in metros. The move is opportune, coinciding with the start of the festive season. This year, we are likely to see a significant improvement in the housing segment during this period. Processing fee and waiver of business-linked interest premium are additional levels of savings. Cumulatively, this package is by far the most eye-catching lucrative offer offered by a home loan lender and it is reasonable to expect other lenders to follow in the footsteps of SBI to make the repayment n competitors,” said Anuj Puri, President – ANAROCK Group.
The bank has also cut the base rate and prime lending rate. According to SBI’s website, from September 15, 2021, SBI’s base rate will be 7.45 percent and prime lending rate will be 12.2%.