The loan comes with added benefits of reduced interest rates that SBI announced due to the reduction in the marginal cost of lending rate (MCLR). For example on a home loan of 50 lakh, one can save approximately 3.5 lakh for a 30-year tenor as compared to last year.
Due to the reduction in MCLR, the effective interest rate for a home loan will be 9.25 percent for women and 9.30 percent for men. The same for auto loan will be 9.65 percent. According to SBI, it will also be waiving off the processing fee of a car loan.
There is also a good news for those customers who are availing home loans on SBI approved projects, online applications or applying for transfer of home will also benefit from the fee waiver.
According to SBI what makes this value proposition sweeter is that the bank is offering lowest interest rate for both home and auto loans and even the ‘Hope loans’. SBI even said that for every home, auto and personal loan it would disburse between October 1 and December 31 of this year, the bank would make a sizeable monetary contribution to recognized NGOs working in the area of education, health, shelter, clean energy and environment across the country.
Also, those transactions which have been made through State Bank digital wallet will also be included as part of this new initiative.
The main idea to introduce the concept of Hope Loans is to provide the bank’s customers, the confidence of joining hands with a trusted and solid brand of the stature of SBI in being the hope for those who are underprivileged.
Source: Business Standard
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