SBI declares cheaper rate home and auto loans during festival season

On Tuesday, State Bank of India (SBI), India's largest lender, declared various offers which include inexpensive rates for home and car loan borrowers, to take advantage of festival zeal.

Customers can avail the cheap loans with included advantages, for example, waiver in processing charges, pre-approved digital loans and loans without an escalation in interest rates spread through different classifications, SBI said in an announcement.

The bank has not determined the timeframe for which this festival offer would be legitimate. Nonetheless, the move would be trailed by different loan specialists also.

"SBI has waived processing fees on car loans during festival season. The bank is offering lowest interest rate starting from 8.70 per cent to customers opting for the car loan, with no escalation in interest," it said.

No escalation will guarantee that the customer won't need to confront variance in the interest rate.

For customers applying for a car loan online through the bank's digital platform like Yono or website, a 25-basis point (bps) discount on the interest rate can be availed, it said.

It further added the salaried customers could also avail the loan up to 90 per cent of the car's on-road price.

SBI reduced the marginal cost of funds-based lending rate (MCLR) by 15 bps due to which 35 bps now decrease the whole home loan interest rate since April 2019.

Presently, the bank offers cheapest home loan with an interest rate of 8.05 per cent as repo rate-linked home loan and this rate will be valid to all existing and new loans from September 1, it said.

For the personal loan, it claimed Rs 20 lakh would be available at the lowest interest rate beginning from 10.75 per cent with the most extended repayment term of 6 years, reducing EMI (equated-monthly instalment) burden on the customers.

Moreover, salaried customers can avail pre-approved digital loans up to Rs 5 lakh through Yono.

Education loan would be available at an attractive interest rate starting from 8.25 per cent for up to Rs 50 lakh and up to Rs 1.50 crore for studies in India and abroad, respectively.

Customers will be offered the longest repayment tenure of 15 years which effectively will reduce their EMI burden, it said.