The State Bank of India is planning to cash in on the reviving demand for home loans and is planning a slew of initiatives for the upcoming festival season in order to drive more growth for its mortgage business. SBI has already waived its processing fees for all home loans and will also have 7,500 executives deployed in the country for promoting and marketing home loans in addition to the thousands who are already doing so at its own branches.
According to the chief general manager at SBI, Vaijinath MG, the bank is expecting a considerable increase in its volumes for the festive season since processing fees have been waived and the interest rates have also been cut and are currently at their lowest levels. There is an exclusive offer available for home loans up to Rs.30 lakh where rates of interest stand at 8.35%. Top-up loans are also being offered and rates are comparable to the interest rates on home loans while processing fees have also been waived on these top-up loans.
Most Indian banks are looking to cash in on the opportunity in the affordable housing sector. SBI has launched its new Hamara Ghar or Our Home scheme for this segment. There is a fixed interest rate for two years for loans up to Rs.30 lakh. SBI has already reported 13.92% of growth in home loan books by the end of June, 2017. The housing loan book is currently at Rs.2.8 lakh crore for SBI and the retail book has grown by 13.31% overall in the last quarter. The home-loan NPA ratio also stands at 1.27% as compared to 9.97% of overall bad loans.
SBI also has a surplus in terms of staff after absorbing five associate banks. The surplus will enable the bank to deploy manpower for promoting home loans with door to door services being offered. The bank also has 24, 000 branches and counting and these will also help in aggressive marketing of home loan products. SBI Realty has also been launched sometime back which is an integrated website, bearing details of more than 3,000 real estate projects which have obtained approval from SBI across India. At present, close to 10 homes are available on the website.