SBI's New Loan Schemes to Lure 7th Pay Commission Beneficiaries
BENGALURU: As the government looks forward to implement the recommendations of the 7th Pay Commission on wage hike, State Bank of India (SBI) is launching a campaign to access the 
85,000 Cr kitty that will flow into the system from September onwards. Similar strategies are also being hatched by other lenders including auto and white goods companies, reports TOI.
With a view to lure the beneficiaries of the Seventh Pay Commission, SBI has introduced home loan products—SBI Privilege Home Loan and SBI Shaurya Home Loan—for public sector undertaking /Central/ State government employees and defence personnel with pensionable service. The scheme will allow the borrowers to pay higher equated monthly installment (EMI) while continuing their tenure and lower EMIs in the post-retirement term. In addition to this, Rajnish Kumar, SBI managing director also revealed that the age bar for the flexibility of repayment of the loan has been elevated from 70 to 75 years, however, the maximum tenure of the loan will continue to be 30 years.
SBI Shaurya, is also planning to offer car loans. A surge in the demand for home and auto loans is being anticipated by the lending institutions, even though Arundhati Bhattacharya, SBI Chairman revealed the arrears payment is as large comparatively. “Mobilizing deposits will be the other focus area for the bank. Retail demand for loans is good and this will help us further,” she added.
The scheme will allow the servicemen to curb the burden of EMIs in the post retirement period and avail the loan without a processing fee. Customers of other banks or financial institutions apart from SBI can opt to change their outstanding loan balance to SBI.
Auto companies like Maruti and Hyundai along with white goods players are gearing up and pitching hard to push sales. “We will launch SBI Privilege (for non-defence government employees) to suit the needs of the borrowers who will be benefiting from the pay commission. This new scheme will also allow for a 5-basis-point (100bps=1 percentage point) reduction in interest rates if they repay through check-off facility and, with the recent reduction in the MCLR (benchmark rate), the interest burden will be 10 bps lower,” said Kumar.
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