On a loan of Rs 30 lakh (outstanding principal) having 15 years of residual tenure and 7.50% interest rate, the borrower can save up to Rs 1.52 lakh by transferring his loan to SBI.
New Delhi: State Bank of India, the country’s biggest lender, has announced special offers on home loans. The lender said borrowers applying for home loan in SBI will get three benefits – nil processing fee, 0.10% interest concession for borrowers having higher Cibil score for loans above 30 lakh and less than 1 crore, additional 0.5% concession if applied through SBI’s Yono app.
Interest rate on home loans have fallen to ove a decade low after the Reserve Bank of India reduced repo rate to 4% since the out break of Covid-19 pandemic. All new home loans at SBI are linked to external benchmark linked, which is at present 6.65%. SBI’s EBR is linked to repo rate. At present, interest rate on SBI home loans vary between 6.95% to 7.45% for salaried customers and for self-employed the rate varies between 7.10% to 7.60%.
Knock Knock! Who's there?
Concessions on SBI Home Loans through YONO.
Apply now: https://t.co/wWHot51u7y
*T&C Apply#YONOSBI #HomeLoan #DreamHome #SBI #StateBankOfIndia pic.twitter.com/7uQiKNecPM— State Bank of India (@TheOfficialSBI) September 9, 2020
Also, the concession on processing fees will help borrowers save up to 0.40% of the loan amount.
Financial planners say the present situation is a good opportunity for home loan borrowers of other lenders, who still pay at MCLR or BPLR-linked rates, to transfer their loans to banks offering home loans at repo-linked rates. Borrowers having home loans linked to MCLR or BPLR are yet to get the full benefit of RBI’s repo rate reduction.
Those having a residual home loan tenure of more than 15 years and paying more than 7.50% interest on their existing home loan, stand to benefit if they transfer their home loans to SBI.
On a loan of Rs 30 lakh (outstanding principal) having 15 years of residual tenure and 7.50% interest rate, the borrower can save up to Rs 1.52 lakh by transferring his loan to SBI.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
