The country’s largest lender State Bank of India (SBI) on Thursday launched a bouquet of festive offers for prospective home loan customers. The offers are aimed at making home loans more affordable in the festive season.

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As per the information provided by the bank, SBI offers credit score linked home loans at just 6.70 percent, irrespective of the loan amount. Earlier a borrower availing a loan greater than Rs 75 lakh, had to pay an interest rate of 7.15 percent.

 

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With the introduction of the festive offers, a borrower can now avail home loan for any amount at a rate as low as 6.70 percent. The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs 8 lakh, for a Rs 75 lakh loan with a 30-year tenure.

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 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.

To welcome the festivities and boost the market sentiments, the lender has waived off the processing fees completely and offers attractive interest concession based on the credit score of the borrower.

C.S. Setty, Managing Director (Retail & Digital Banking), SBI said “We are pleased to launch the festive offer for our prospective home loan customers. Generally, the concessional interest rates are applicable for a loan upto 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 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," he added.