State Bank of India (SBI) has announced special offers on home loans for borrowers.
Making the announcement through a tweet, the public sector lender said that homebuyers applying for loans will get three benefits- nil processing fee, 0.10% interest concession for borrowers having a higher Cibil score for loans above 30 lakh and less than 1 crore, and an additional 0.5% concession if applied through SBI's Yono app.
Currently, the interest rate on SBI home loans vacillates between 6.95 per cent to 7.45 per cent for salaried customers, and 7.10 per cent to 7.60 per cent for self-employed.
All new home loans at the bank are linked to an external benchmark rate (EBR), which currently stands at 6.65 per cent.
The EBR is linked to repo rate. The concession on processing fees will help home loan seekers save up to 0.40 per cent of the total (loan) amount.
For example, on a loan of Rs 30 lakh having 15 years of residual tenure and an interest rate of 7.50 per cent, the borrower can save up to Rs 1.52 lakh if he/she transfers his/her (home) loan to SBI.
Interest rates on home loans have dropped to over a decade low after the RBI slashed repo rate to 4 per cent since the coronavirus outbreak.