SBI Cuts Auto & Home Loans ahead of Festive Season

By siliconindia  |  Tuesday, 29 September 2020, 12:49:15 PM IST

SBI Cuts Auto & Home Loans ahead of Festive Season
With festival season fast approaching, the State financial Institution SBI announces fee waivers and rate cuts on various consumer loans. On this note, the interest rate on the car and personal loans has been cut down to 7.5 percent and 9.6 percent respectively. 
In order to promote it's digital platform Yono, the bank is also providing special rates for loans using its all-in-one mobile app which has witnessed about 5.8 crore downloads to date. Alongside this, SBI is also offering special deals such as waiver of processing fee on car, gold, personal, and home loans in certain projects that obtained approval. Earlier the bank has provided auto loans at 7.75 percent and personal loans were mostly in double digits. 
SBI already accounts for one out of every three auto loans and home loans in the country. The customers who are availing home loans over 30 lakh would get the credit score-based concessions of about 10 basis points (100 bps equates one percentage point). Thus, homebuyers could avail about five bps interest concessions if they apply for a loan through the bank's Yono app. This brings in an added advantage of obtaining instant approval based on the borrower eligibility with just minimal visits to the bank. 
Furthermore, the bank would enable flexible repayment facility on gold loans that are available at 7.5 percent. The customers who have already taken home loan are eligible for a top-up loan using the Yono app. Apart from pulling down the auto loans, SBI is also giving 100 percent finance on certain selected models. 
Along with this, SBI is also using its analytics software that could scan the transactions in a savings account of the pre-approved customers. This feature enables any customer of the bank to verify their eligibility just by sending across a text message. 
Commenting on the banks' offer, C S Setty, MD (Retail & digital banking) SBI states, “With the economy recovering gradually, we hope to see a boost in consumer spends and at the same time ensure SBI’s helping hand to all those in addressing their financial needs to have a pleasant festive season.” 
 

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