Banking

SBI home loan interest rate at record low, no processing fee till March-end. Know details

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The State Bank of India has waived the processing fee on home loans till 31 March, 2021. The country’s largest lender offers home loans at interest rate starting as low as 6.80% per annum. SBI provides a host of various home loans for the customers — regular home loan plans, SBI Privilege Home Loan for government employees, SBI Shaurya Home Loan for army and defense personnel, SBI MaxGain Home Loan, SBI Smart Home, Top-up Loan for existing customers, SBI NRI Home Loan, SBI FlexiPay Home Loan for a loan of the higher amount and SBI HerGhar Home Loan for women. New customers can get all information on home loans by giving a missed call on 7208933140, the bank said.

“Even though it might constitute just a small portion of the loan liability, fringe costs such as processing fee do add up to the ultimate price of borrowing. A waiver on this, along with the reduced rate of interest would definitely prompt a larger number of buyers to invest in property at a time when property values are at records low and stamp duty and circle rate reductions have brought housing affordability to a record high in India,” said Mani Rangarajan, Group COO, Housing.com, Makaan.com and Proptiger.com.

Last week, SBI signed a Memorandum of Understanding (MoU) with Shapoorji Pallonji Real Estate. Customers of SBI and Shapoorji Pallonji Real Estate, will now be able to avail the benefits of faster processing of home loans and approvals along with other unique value add schemes

With a histrionically low home loan interest rate, the bank commands a market share of 34% in the home loan segment. “SBI witnessed spectacular growth in Home loans in December 2020 with the highest sourcing, sanctions, disbursements, and growth that the bank had ever registered,” the lender earlier said.

The State Bank of India recentlyreached a landmark by crossing the 5 lakh crore- mark in its home loan business. The bank has set its sight on achieving a home loan AUM of 7 lakh crore by FY 2024.

The top lender has issued nearly two lakh home loans under Pradhan Mantri Awas Yojana (PMAY) till December 2020. The lender is also the only bank designated by ministry of housing and urban development as the central nodal agency for processing PMAY subsidy.

“To support Govt’s flagship program of ‘Housing for all by 2022’, SBI has been continuously extending home loans under PMAY and has sanctioned 1,94,582 home loans as of December 2020,” the bank said in a statement.

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