The country's largest public sector bank, State bank of India, has slashed processing fees on certain retail loans products by 50 percent. The products on which the bank is offering reduced processing charges are home loans and auto loans.
SBI issued a statement on the matter, which further said that the offer will be extended on loans sanctioned from October 17 to December 31 of this fiscal. It said, "With this reduction, the bank is quoting the lowest processing fee on both home and auto loans to our esteemed customers."
Processing fees for home loans of up to Rs. 25 lakh will now be 0.125 percent of the loan amount, earlier it was 0.25 percent. For home loans between Rs. 25 lakh to Rs. 75 lakh, the processing fee has been reduced to Rs. 3250, from Rs. 6500 that it was charging earlier. For home loans of more than Rs. 75 lakh, it will be charging Rs. 5000, as against Rs. 10, 000 that it was charging for each application earlier.
Similarly, for auto loans segment, the processing charges have been reduced to 0.255 percent as against 0.51 percent it charged earlier.
It should be noted that previous month itself, SBI had slashed its base rate to 9.75 percent, a rate cut of 0.25 percent.