The forthcoming festival season just got brighter with the latest announcement from state-run State Bank of India (SBI) for auto, home, personal and education loans on Tuesday.
SBI offering interest rate starting from 8.7% for car loan, with no escalation in interest. Concession of 25 bps on interest rate if applied for car loan via digital platform; salaried customers can avail the loan up to 90% of the car’s on-road price pic.twitter.com/iVdGSEIsTR
— CNBC-TV18 (@CNBCTV18Live) August 20, 2019
The country's largest lender offered customers cheaper loans with added benefits such as waiver in processing fees, pre-approved digital loans and loans with no escalation in interest rates spread across various categories.
The bank has not specified the time period for which this festival offer would be valid. However, the move would be followed by the other lenders as well.
"SBI has waived processing fees on car loans during festival season. The bank is offering lowest interest rate starting from 8.70 percent to customers opting for car loan, with no escalation in interest," it said.
On 19 August, SBI had announced the extension of the credit period of automobile dealers that were facing demand slowdown and inventory build-up.
"We are actively engaging with the auto dealers and in case of hardship faced by them the bank is extending credit repayment period on the case-to-case basis," SBI managing director (retail & digital banking) told reporters here on Sunday.
Normally the credit period is of 60 days but the bank has extended the same to 75 days in some cases or 90 days in others, he added.
No escalation will ensure that the customer will not have to face fluctuation in the interest rate.
For customers applying for a car loan online through the bank's digital platform like YONO or website, a 25-basis point concession on interest rate can be availed, it said.
The salaried customers can also avail the loan up to 90 percent of the car's on-road price, it said.
Recently, SBI reduced marginal cost of funds-based lending rate (MCLR) by 15 bps due to which overall home loan interest rate is now reduced by 35 bps since April 2019.
Currently, the bank offers cheapest home loan with an interest rate of 8.05 percent as repo rate-linked home loan and this rate will be applicable to all existing and new loan from September 1, it said.
With regard to personal loan, it claimed Rs 20 lakh will be available at the lowest interest rate starting from 10.75 percent with the longest repayment tenure of 6 years, reducing equated-monthly instalment (EMI) burden on the customers.
Additionally, salary account customers can avail pre-approved digital loans up to Rs 5 lakh through YONO.
Education loan would be available at an attractive interest rate of starting from 8.25 percent for up to Rs 50 lakh and up to Rs 1.50 crore for studies in India and abroad, respectively.
Customers will be offered the longest repayment tenure of 15 years which effectively will reduce their EMI burden, it said.
— With PTI inputs
Updated Date: Aug 20, 2019 16:06:25 IST