In a move to boost loan demand in the festive season, State Bank of India, the country’s largest lender, has decided to waive processing fees on vehicle loans.
The bank charges a fixed rate of 8.7% for car loans and has sweetened the deal for customers applying through the bank’s digital banking platform — there will be a discount of 25 basis points (bps) if the loan application comes via the bank’s website or YONO, its mobile banking application.
“Salaried customers can also avail loan of up to 90% of the car’s on-road price,” SBI said in a statement.
The lender also said personal loans are offered with interest rates starting from 10.75%, along with repayment period of six years. The move comes after the Reserve Bank decided to lower risk weight on personal and individual car loans, from 125% to 100%. The aim was to encourage banks to push more such loans.
SBI said it was offering education loans with interest rates starting from 8.25% for up to Rs 50 lakh and up to Rs 1.50 crore for studies in India and abroad, respectively.
“Customers will be offered the longest repayment tenure of 15 years, which effectively will reduce their EMI burden,” SBI said. Recently, SBI reduced its marginal cost of funds-based lending rate by 15 bps due to which the overall home loan interest rate is now lower by 35 bps.
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