State Bank of India announces home, auto loans at cheaper rates during festival season

State Bank of India (SBI), the country's largest lender, on Tuesday announced a number of offers including cheaper rates for home and auto loan borrowers, to cash in on festival fervour. Customers can avail the cheaper loans with added benefits such as waiver in processing fees, pre-approved digital loans and loans with no escalation in interest rates spread across various categories, SBI said in a statement.

The bank has not specified the time period for which this festival offer would be valid. However, the move would be followed by the other lenders as well. "SBI has waived processing fees on car loans during festival season. The bank is offering lowest interest rate starting from 8.70 per cent to customers opting for car loan, with no escalation in interest," it said.

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No escalation will ensure that the customer will not have to face fluctuation in the interest rate. For customers applying for a car loan online through the bank's digital platform like YONO or website, a 25-basis point concession on interest rate can be availed, it said. The salaried customers can also avail the loan up to 90 per cent of the car's on-road price, it added.

Recently, SBI reduced marginal cost of funds-based lending rate (MCLR) by 15 bps due to which overall home loan interest rate is now reduced by 35 bps since April 2019. Currently, the bank offers cheapest home loan with an interest rate of 8.05 per cent as repo rate-linked home loan and this rate will be applicable to all existing and new loan from September 1, it said.

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With regard to personal loan, it claimed Rs 20 lakh will be available at the lowest interest rate starting from 10.75 per cent with the longest repayment tenure of 6 years, reducinequated-monthly instalment (EMI) burden on the customers. Additionally, salary account customers can avail pre-approved digital loans up to Rs 5 lakh through YONO.

Education loan would be available at an attractive interest rate of starting from 8.25 per cent for up to Rs 50 lakh and up to Rs 1.50 crore for studies in India and abroad, respectively. Customers will be offered the longest repayment tenure of 15 years which effectively will reduce their EMI burden, it said.