SBI Home Loan Rate: Processing fee dropped! These YONO app users can get interest rate relaxation too; check calculator

SBI Home Loan Rate: The State Bank of India (SBI) has announced a series of festive offers for its customers that includes 100 per cent waiver of processing fee for SBI Home Loan applicants. The largest commercial bank of India also announced SBI Home Loan interest rate relaxation by 10 bps for those customers who have a better credit score. Apart from this, if an SBI customer applies for the Home Loan via YONO SBI App, there is additional 5 bps relaxation in the SBI Home Loan rate being announced by SBI.

SBI informed about the decision in a statement. It said, "SBI has announced special festive offers on home loans for home buyers. There would be a complete waiver on processing fees on home loans for homebuyers in approved projects. The bank is also providing special concessions up to 10bps on the interest rate for the customers based on their credit score and loan amount. Additionally, homebuyers can avail 5bps interest concession if they apply for a home loan via YONO SBI App (YOU ONLY NEED ONE APP)."

For information of readers, SBI commands nearly 34 per cent market share in home loans and nearly 33 per cent in the auto loans segment.

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Hailing the SBI Home Loan festive offers, Mani Rangarajan, Group COO at Housing.com said, "Banks generally charge processing fee to the tune of 0.5 per cent to 1 per cent on home loans. As State Bank of India is one of the largest home loan providers, the waiver of processing fees augurs well for the consumers. Coming as it is on the verge of the commencement of festive season, the decision would encourage customers to opt for a dream home especially considering the stable property prices and interest rate, which is at 15 year low. With SBI being the market leader, other banks and financial institutions may follow suit."

SBI Home Loan Calculator

So, if someone goes for Rs 30 lakh home loan from SBI, the instant savings of the homebuyer would be up to Rs 30,000. As per the official website of SBI — onlinesbi.com, with effect from 1st July 2020, SBI Home Loan rate of interest is 6.95 per cent. So, if a home loan applicant has better credit score and is a YONO SBI App user, there will be 0.15 per cent interest rate relaxation means the home loan interest rate applicable will be 6.80 per cent. As per the SBI Home Loan EMI calculator, at 6.95 per cent monthly EMI of the Home Loan for 20 years will be Rs 23,169 while monthly EMI will become Rs 2,900 when the interest rate becomes 6.80 per cent. So, in 20 years, the SBI Home Loan applicant will be able to save Rs 64,560 during the home loan repayment period.