SBI lessens Home Loan Rates, encourages Balance Transfer Option
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The country’s largest bank SBI has reduced the home loan rates to attract more borrowers and encourage balance transfer option.
It has pitched its low rates to those who have already availed mortgages from competitors, to get them to switch over. The primary step taken is sending emails to customers to market and attract customers for aBalance Transfer Scheme. This scheme will also help in selling fresh loans.
1) SBI offer loans up to Rs 75 lakh at an interest of 10.15% and 10.3% for above Rs 75 lakh.
2) It offers 15 basis points above its base rate of 10%. Floating rate loans are provided on base rate.
3) Home Loan includes absence of charges on foreclosures, pre-payment and balance transfer fee of Rs 1,000.
4) Maximum tenure decided is 30 years.
“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.