SBI announces special car, personal, education loan benefits ahead of festive season
India’s biggest bank State Bank of India (SBI) has announced special offerings ahead of this festive season for retail customers across different product categories: auto/car loan, personal loan, education loan and home loan. SBI has waived processing fees on car loans during this festival season. In addition, SBI is offering “lowest” interest rate starting from 8.70% to customers opting for car loan, with no escalation in interest, the bank said. For customers applying online through SBI’s digital platform like YONO/its website, the bank is providing 25 bps concession on interest rate. In addition, salaried customers can also avail the loan up to 90% of the car’s on-road price.
On the personal loan front, SBI is offering loan up to Rs. 20 lakh with interest rate from 10.75% with repayment tenure of up to six years. Additionally, salary account customers of SBI can avail pre-approved digital loans up to Rs. 5 lakh through its YONO platform.
SBI is also offering education loan at an interest starting from 8.25% for loan up to ₹50 lakh for studies in India and up to₹1.50 crore for studies abroad respectively, with repayment tenure of 15 year.
Recently, SBI had reduced MCLR by 15 bps, bringing down overall interest rate on new home loans by 35 bps since April 2019.
SBI claims to offer “cheapest home loan” with interest rate of 8.05% as RBI’s repo rate linked home loan. This rate will be applicable to all existing and new loan from 1 September, the bank said.
SBI is also extending loan repayment time for struggling automobile dealers by 15 to 30 days amid slowing car sales. Many automobile dealers are facing difficulty in repaying loans as per schedule as sales have fallen sharply. India’s passenger vehicle industry recorded its worst performance in nearly 19 years in July as sales fell 31%.
SBI has an exposure of ₹11,500 crore to auto dealers. “Normally, the repayment period is 60 days. So, we extend it to 75 days for some dealers and to 90 days for a few others,” said PK Gupta, managing director of SBI.