Banking major State Bank of India (SBI) announced on Thursday that as part of its festive season offers, the bank is offering credit score linked home loans at just 6.70%, irrespective of the loan amount.
In an official statement, SBI explained that 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 season offers, a borrower can now avail home loan for any amount at a rate as low as 6.70%
SBI stated that this offer results in a saving of 45 bps which translates to a significant interest saving of more than Rs 8 lakh for a Rs 75 lakh loan with a 30-year tenure.
The bank further added that 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 now removed this distinction between a salaried and a non-salaried borrower.
SBI explained that now there is no occupation-linked interest premium being charged to prospective home loan borrowers. The bank added that this would lead to a further interest saving of 15 bps to non-salaried borrowers.
In order to welcome the festivities and boost the market sentiment, SBI has waived off the processing fees completely. The bank will also be offering attractive interest concessions based on the credit score of the borrower.
Commenting on the bank's festive offers, CS Setty, Managing Director (Retail & Digital Banking), SBI, said, "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 homeownership more affordable".
"Our country has shown tremendous resilience during the pandemic. Being the Banker to every Indian, we, are committed to doing our bit in reviving the economy by enabling housing for all," added Setty.
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