“The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs. 8 lac, for a Rs. 75 lac loan with a 30 year tenure,” stated the press release.
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 said that it 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 to non-salaried borrowers,” stated the bank.
The lender has also waived off the processing fees completely and will be offering 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 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,” said C.S. Setty, Managing Director (Retail & Digital Banking), SBI.
“Latest ANAROCK research reveals that the highest demand is currently in the premium segment, where properties are priced Rs 80 lakh and above. This is primarily the result of homes now doubling as offices and e-learning centres. This lending rate will also not restrict which cities will benefit from it – in previous concessional rates limited to budget housing, only tier 2 and tier 3 cities could really benefit. With this democratized interest rate, SBI also addresses the huge housing demand in the metros. This move is aptly timed, coinciding with the beginning of the festive season. This year, we are likely to see significantly improved traction in the housing segment during this period. Waiving of processing fees and occupation-linked interest premium are added levels of savings. Cumulatively, this package is the most compellingly attractive offering ever extended by a housing loan lender and it is reasonable to expect that other lenders will follow SBI’s footsteps in order to remain competitive,” said Anuj Puri, Chairman – ANAROCK Group.
The bank also cut its base rate and prime lending rate. According to the SBI website, with effect from September 15, 2021, SBI’s base rate will be 7.45% and its prime lending rate will be 12.2%.