SBI likely to extend home loan scheme
Kolkata: With a surplus liquidity of Rs 40,000 crore as on March 31, 2010, State Bank of India (SBI) is likely to extend its special home loan scheme depending on its liquidity condition. According to the scheme, SBI offers home loans at an interest of 8 percent for the first year and 8.5 percent for the second and third year for loans up to 
50 lakh and tenure of 25 years, reports Shobha Roy for Business Line.
After the third year, it will be a floating rate at 2.75 percent below SBAR and 1.25 percent below SBAR with a reset frequency of five years. For loans above Rs 50 lakh, the interest rate will be 8 percent for first year and 9 percent for the second and third year.
For the quarter ended March 31, 2010, SBI's net interest margins improved at 2.96 percent, compared to 2.39 percent last year. With a 32 percent growth, the bank's home loan segment grew to 71,193 crore against Rs 54,063 crore during the last year.
According to S.K. Bhattacharya, Managing Director, SBI, over 95 percent of customers in rural, semi urban and urban areas were first time home buyers. With an increase from 14,400 loans, sanctioned in February 2009, to 22,000 in September 2009, the bank's average home loan sanctions increased up to 50 percent.
50 lakh and tenure of 25 years, reports Shobha Roy for Business Line.
After the third year, it will be a floating rate at 2.75 percent below SBAR and 1.25 percent below SBAR with a reset frequency of five years. For loans above Rs 50 lakh, the interest rate will be 8 percent for first year and 9 percent for the second and third year.
For the quarter ended March 31, 2010, SBI's net interest margins improved at 2.96 percent, compared to 2.39 percent last year. With a 32 percent growth, the bank's home loan segment grew to 71,193 crore against Rs 54,063 crore during the last year.
According to S.K. Bhattacharya, Managing Director, SBI, over 95 percent of customers in rural, semi urban and urban areas were first time home buyers. With an increase from 14,400 loans, sanctioned in February 2009, to 22,000 in September 2009, the bank's average home loan sanctions increased up to 50 percent.