SBI Woos Homebuyers With A Festive Discount On Interest Rates

The State Bank of India announced a discount on interest rates for homebuyers during the ongoing festive season in a bid to boost consumer demand.

Home loan customers will get an interest rate concession of up to 20 basis points based on their CIBIL score for properties costing Rs 75 lakh and above, India's largest lender said in a press release on Wednesday. Those who apply on YONO—the bank’s digital banking platform—will receive a further concession of 5 basis points, and women will be eligible for another 5-basis-point discount.

For loans between Rs 30 lakh and Rs 75 lakh, homebuyers will receive a concession of up to 10 basis points.

SBI's interest rates start at 6.9% for a home loan of up to Rs 30 lakh, and at 7% for borrowing above Rs 30 lakh.

“With the nation geared up to the post-Covid era, we are witnessing increased customer demands,” CS Setty, managing director for retail and digital banking at the lender, said. The offer, he said, is likely to encourage more customers to avail a home loan.

The country’s largest lender has already announced other festive offers for retail customers, including processing fees waiver on car, gold and personal loans. Interest rates on retail loans start from 7.5% for cars, the bank said.

Non-food credit growth hasn't picked up despite falling interest rates amid low consumer demand and weak sentiment as the pandemic rages. Housing loans, comprising bulk of personal loans, rose by 11.1% in August on an annual basis compared with 16.6% a year earlier. This, according to RBI data, was despite housing prices rising at the slowest pace in recent years.