SBI eases dealer financing, reduces rates by 50 bps
By Joseph Samson
Jul 3, 2009
Print    Email    RSS   

Banking major, State Bank of India has reduced dealer financing rate by 50 basis points, besides waiver of mortgage charges on the home loans with effect from July 1, the day that also marks the foundation day of the institution.

Under this scheme, authorised dealers* will be availed short-term 'working capital loans' ranging from Rs 5 lakh to Rs 15 crore. The bank has waived mortgage charges amounting to Rs 15,000 on an average under the offer and will also provide the dealers with facilities like roaming current account and multi-city cheques under the offer.

The scheme is available only for the new dealers. The old customers of the bank can move into the new scheme only after the renewal of existing loan. Dealers engaging for availing this facility would be required to provide security backup (in form of fixed assets like property or fixed deposit amounts).

The scheme is valid till the end of this year (December 2009).

Commenting on the launch of scheme, BS Bhasin, CGM - SME, said, "The bank aims to increase its market share by offering this scheme. Currently, our market share is about 10%, and by December 2009, we plan to double it."

Presently, the SME portfolio of the company is around Rs 1-lakh crore, in which the share of dealer finance is about 10 percent. The bank also already entered into alliance with steel, automobile, and cement companies to avail their respective dealers, finance facilities at concessional rates.

Last week the bank lowered its lending rate, the State Bank Advance Rate (SBAR) by 50 basis point to 11.75 percent from the earlier 12 percent, with effect from June 29.

(* dealers authorised by manufacturing companies)


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

The home loans interest rate story: The...
Bank of Maharashtra reduces home loan rates
Home Loans come with Tax Rebates!
Joint Home Loan: A wise decision for a...
Prepayment on loans: 'To do or not to do'

PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive