Amid slowdown in demand, SBI announces cheaper loans

With an eye on getting business this festive season amid a slowdown in demand, the country's largest public-sector lender State Bank of India on Tuesday offered discounts on interest rates on home, car and personal loans, and waived processing fee for car loans to attract retail customers.

“Customers can avail attractive and cheaper loans with added benefits –waiver in processing fees, pre-approved digital loans, and loans with no escalation in interest rates – spread across various categories,” a bank official said.

The bank is offering the lowest interest rate starting from 8.70% to customers opting for car loans, with no escalation in interest.

For customers applying for a car loan online through SBIs digital platform like YONO/ bank’s website, the SBI is providing 25 bps concession on the interest rate. Salaried customers can also avail the loan up to 90% of the car’s on-road price.

SBI is also offering personal loans up to Rs 20 lakh at an interest rate starting from 10.75% with a re-payment tenure of 6 years, reducing EMI burden on the customers.

Additionally, salary account customers can avail pre-approved digital loans up to Rs 5 lakh through YONO easily.

SBI has also come up with an education loan at an attractive rate of interest starting from 8.25% for a loan 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 re-payment tenure of 15 years which effectively will reduce their EMI burden,” the official said.

Recently, SBI has reduced MCLR by 15 bps due to which overall home loan interest rate is now reduced by 35 bps since April 2019.

Currently, the bank offers the cheapest home loan with an interest rate of 8.05%. The loans are repo rate-linked and the rate will be applicable to all existing and new loans from 1st September.