New Delhi: The festival offer announced by SBI during the month of October, which offered low interest rates and discounts on processing fees till 31st December has paid off handsomely. Despite a slowdown in the credit demand due to the high property prices and other banks struggling to perform in this segment, SBI home loans have shown a steady growth.
Though, the officials were reluctant to specify the exact growth rate figures they did describe the growth in home loans as 'marginally better' than the same period last year.
SBI is still having a festival offer with home loan interest rates pegged at the lower end. The discounts are far more than what other home loan providers have to offer. On the top of it, the trust SBI has built among the consumers over the years and a promise to offer loans with no hidden charges is adding punch to the SBI offer.
The table below summarizes the interest rate cut by SBI available up to 31 December this year.
|SBI Home Loans Rates||5 Years||5 -15 Years||15-20 Years|
|Up to Rs 20 lakh||10%||10.75%||10.25%||11.25%||10.5%||11.25%|
|Over Rs. 25 lakh||10.25%||11.25%||10.5%||11.25%||10.75%||11.25%|
In addition to the above offer, SBI had earlier organized a home loan festival in Kokata, and Vishakapatnam where it offered fabulous discounts on interest rates as well as processing fees. SBI Deputy Managing Director & Group Executive - National Banking Sitaramam Komaragiri said, "The bank’s cost of funds is low at 5.5 percent, but it is still able to make profits. Because of its low costs, the bank is able to finance borrowers who have taken home loans from other banks."