State Bank of India (SBI), the biggest public sector bank in India, has announced a welcome development for prospective home loan applicants. The bank will be keeping its processing fee waiver facility open for three more months. The bank will keeping the waiver on processing fees for home loans applicable till the 31st of March, 2018, for all its new customers and other customers who wish to transfer their home loans to State Bank of India from other financial institutions.
This announcement pertaining to a waiver in processing fees has come as a major relief to prospective homebuyers who were looking to apply for loans. This will reduce the overall costs of loans and make these more attractive to those sitting on the fence till now. SBI has also cut the BPLR (benchmark prime lending rate) and base rate and several customers will profit from this new decision. The new rates will come into effect from the 1st of January, 2018.
According to senior officials from the bank, these twin moves are major gifts from SBI to all its customers who have stayed loyal for so many years. This will also ensure better home loan facilities and lower costs for new borrowers. SBI currently has 26.02 lakh crore deposits and is the biggest commercial bank operating in the country by way of deposits, branches, assets, employees, profits and customers. SBI previously charged 8.30% as an interest rate annually for its home loans up to Rs. 30 lakh for all salaried customers who met the eligibility guidelines.