The public sector lender, State Bank of India, has cut the processing fees on its auto loans schemes to a mere Rs. 500 irrespective of the loan amount. Apart from this, the bank will continue to offer its festive season offering of low processing fees on home loans, a scheme will was scheduled to end in December 2012.
Prior to this reduction, the bank was charging about 0.5 percent processing fees for its auto loans segment. Later, the fee was reduced to half to 0.255 percent in October last year. On this, a bank executive said, "Now the charges will be Rs 500 flat irrespective of the size of the loan." He also added that at that time, the charges were slashed following the rate cuts by other banks.
SBI is offering its car loans at an interest rate of 10.5 percent, which is the cheapest auto loans deal in the country.