The country's largest lender State Bank of India Thursday announced various festive offers for prospective home loan customers, including a credit score-linked home loans starting at 6.70 per cent, irrespective of the loan amount.
Earlier a borrower availing a home loan above Rs 75 lakh, had to pay an interest rate of 7.15 per cent.
With the introduction of the new offer, a borrower can now avail home loan for any amount at a rate as low as 6.70 per cent, the bank said in a release.
This will result in a saving of 45 basis points (bps) which translates to a interest saving of more than Rs 8 lakh, for a Rs 75 lakh loan with a 30-year tenure, it said.
Further, the rate of interest applicable for a non-salaried home borrower was 15 bps higher than the interest rate applicable to a salaried borrower. The lender 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, it said adding that this would lead to a further interest saving of 15 bps to non-salaried borrowers, the release said.
"Generally, the concessional interest rates are applicable for a loan up to a certain limit and are also linked to the profession 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 bank's Managing Director (retail and digital banking) C S Setty said in the release.
The 6.70 per cent home loan offer is also applicable to balance transfer cases, he said.
The lender said it has waived off the processing fees.
Setty said zero processing fees and concessional interest rates in the festive season will make homeownership more affordable.
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