State Bank of India (SBI), the country’s largest lender, has announced a slew of offers across different loan categories such as car loans, personal loans, education loans and home loans. The bank said it has waived processing fees on car loans. SBI is offering interest rate starting from 8.70 per cent to customers opting for car loans, the bank said in a statement.
The bank has also announced revised interest rates for customers availing personal and education loans. Earlier this month, SBI reduced its marginal cost of funds-based lending rates or MCLR by 15 basis points (0.15 percentage point). That marked a reduction in home loan rates.
Here are 10 things to know about SBI’s latest announcements:
- For customers applying for a car loan online through SBI’s digital platform like Yono/ bank’s website, the lender is providing additional 25 basis points concession on interest rate, according to bank’s statement.
- The salaried customers can avail the loan of up to 90 per cent of the car’s on-road price, the bank said.
- SBI is offering personal loan up to Rs. 20 lakh at interest rate starting from 10.75 per cent with the longest re-payment tenure of 6 years.
- Under personal loan, salary account customers can avail pre-approved digital loans up to Rs. 5 lakh through Yono app, the bank said.
- The bank is offering education loan at starting at an interest rate of 8.25 per cent for loan up to Rs. 50 lakh and up to Rs. 1.50 crore for studies in India and abroad respectively, according to SBI. Customers will be offered the longest re-payment tenure of 15 years for the same.
- In a separate announcement, SBI said its effective repo linked lending rate (RLLR) for cash credit or overdraft customers will be revised to 7.65 per cent from September 1.
- Cash credit (CC) is a short-term source of financing which enables customers to withdraw money from a bank account without keeping a balance. While, an overdraft account is a type of account from which customers can withdraw amount even if there is no fund in the account.
- Recently, SBI reduced MCLR by 15 basis points due to which overall home loan interest rate got reduced by 35 basis points since April 2019. MCLR currently stands at 8.25 per cent for the one-year tenor, according to SBI.
- SBI introduced repo-linked home loan products in July this year. A repo rate-linked home loan means that any changes in the key interest rate by the central bank are passed on directly to the customers.
- Last month, SBI released its quarterly earnings. It reported net profit of Rs. 2,312.20 crore in April-June period compared with loss of Rs. 4,875.85 crore in the same quarter last year.