The country's largest lender, State Bank of India (SBI) on Monday announced a slew of special offers on home, car, personal and gold loans for its retail customers ahead of the festive season.
The bank has announced a 100 percent processing fee waiver for all customers applying for Car, Gold, and Personal loan through its digital application, YONO. Its lowest interest rate starts from 7.5 percent for customers who opt for car loans. They can also get 100 percent on-road finance on select models.
Earlier this month, the Finance Minister in a meeting with banks had urged them to push credit ahead of the festive season to help revive economic activity. So far, banks have reported a tepid rise in credit growth owing to the COVID19 pandemic, and their growing risk aversion amid the economic slowdown.
SBI today said it would completely waive off the processing fees on home loans for homebuyers of approved projects. It will also provide special concessions of up to 10 bps on interest rates, based on the customers' credit score and loan amount.
To promote the use of its application, SBI said that homebuyers can avail 5 bps interest concession if they apply through YONO.
“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," said CS Setty, MD (Retail & Digital Banking), SBI.
Further, the gold loan customers will now have flexible repayment options for up to 36 months at the lowest interest of 7.5 percent.
To enhance the availability and affordability of credit to individuals in the times of the current crisis, the bank is offering Personal loans with lending rates as low as 9.6 percent.
Its banking and lifestyle platform YONO will also offer customers in-principal approval on the Car and Gold loan application.
SBI customers can also avail a pre-approved paperless personal loan on YONO app. They can simply check their eligibility via SMS by typing PAPL <space> <last 4 digits of SBI a/c no.> to 567676, the bank said.