“The takeover campaign has been started with a view giving an option to switch over to our home loans, which have the lowest interest rate,” senior officials from the bank said. Customers should be aware of the bank’s schemes that trick to offer low rate, hence trap to pay high amount using additional charges.
Banks are targeting larger loans by offering uniform rates up to Rs 75 lakh. In the case of SBI, nearly 77% home loan portfolio comprises loans up to Rs 30lakh. By increasing basic rates of 10.15% for loans up to Rs 75 lakh, SBI seems to be testing the waters for expanding its loan size for the extended tenure. In the case of home loans above Rs 75 lakh, rates vary depending upon credit score of the borrower.