SBI slashes interest rates on car loans, home loans ahead of festive season

SBI slashes interest rates on car loans, home loans ahead of festive season

State Bank of India has announced special offers across loan products ahead of the festive season this year. The largest lender in India is providing several benefits on auto loan, personal loan, home loan and education loan.

SBI has waived off the processing fees for auto loans. The interest rate on SBI auto loan starts at 8.7 per cent with no escalation in interest. Those applying for a SBI car loan via the bank’s website or its digital platform YONO can avail concession of 25 bps on interest rate. This would take the effective interest rate on car loan to 8.45 per cent. As for maximum loan amount, salaried individuals can avail up to 90 per cent of the vehicle’s on-road price.

For personal loans, SBI is offering loans up to Rs 20 lakh at an interest rate of 10.75 per cent and repayment tenure of six years. Moreover salary account holders with SBI can avail pre-approved digital loans up to Rs 5 lakh via bank’s YONO platform in just four clicks.

During the festive season, SBI will offer education loans up to Rs 50 lakh for students planning to study in India and Rs 1.5 crore for those going abroad for studies at interest rates starting from 8.25 per cent. The education loan can be repaid in a period of 15 years.

Recently, SBI reduced its MCLR by 15 bps, due to which its overall interest rate on home loan is now reduced by 35 bps since April 2019. Following this, SBI’s interest rate on home loans will come down to 8.05 per cent. These interest rates will come into effect for existing and new borrowers from September 1, 2019.

Recent reports suggest that SBI is planning to extend repo-linked lending rates (RLLR) to existing home loan borrowers so that they too can avail cheaper home loans. The scheme had reached only new loan customers when it was launched in July earlier this year.