The State Bank of India (SBI) said on Saturday that it has waived mortgage processing fees until August.
Currently, the mortgage processing fee is 0.40%, while for most other lenders, it is 50-100 basis points of the loan amount.
The latest relaxation is part of your limited time “Dhamaka Monsoon Offer”. The country’s largest lender claims that through the use of the program, home loan customers can obtain substantial benefits and also help rejuvenate consumer sentiment.
“Considering that SBI’s housing loan interest rate is only 6.70%, now is the best time to buy a house,” SBI said in a statement. It added that Monsoon Dhamaka’s offer is valid until August 31, 2021.
Observers stated that the proposal is another attempt by the state bank to increase its market share in the highly competitive mortgage loan sector, especially when lending to the industry is slow.
SBI’s actions were taken ahead of the three-day Monetary Policy Committee meeting scheduled to begin on August 4.
However, given the uneven economic recovery, the RBI is expected to maintain its policy interest rate and its relaxed stance.
“This fee reduction and waiver offer will promote and encourage homebuyers to make decisions with ease, as interest rates are at a historically low level. We strive to be a banker for all Indians and, therefore, a partner in nation building, “CS Setty, MD, SBI (retail and digital banking) said.
There will be a discount of five basis points for home loans requested through the bank’s YONO application. Female borrowers will also be eligible for 5 basis points of credit card interest rates starting at 6.80%.
The central bank’s data on the bank’s credit department showed that industrial credit growth in June 2021 shrank by 0.3% from the 2.2% growth in June last year. Housing loans increased by 9.8%.
