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State Bank of India (SBI) is planning to has disburse home loans to the extent of Rs 20,000 crore this financial year (2019-20) in Karnataka (which includes Bengaluru) market.
“We are hopeful of achieving our set target of Rs 20,000,” Abhijit Majumder, Chief General Manager-Karnataka, SBI told Business Line on the sidelines of SBI Home Loan Utsav.
“Among the home loan disbursals, it is the mid-size segment ie up to Rs 50 lakhs which has been the bulk. This year we are planning to target affordable housing in a big way,” he added.
The bank last year had disbursed Rs 15,000 crore.
Housing loans are witnessing a steady growth for the bank in Bengaluru with IT sector and builder relationship being the driving force. “With the introduction of RERA and GST it is providing the regulatory checks and balances,” Majumder said.
Majumder said “It is estimated that monthly 50 per cent of Bengaluru market home loan buyers are under 35 years and it is here SBI has emerged as the leader.”
The bank has started offering home loan linked to Repo Rate. After the linkage of loans to Repo Rate, consumers have the option to take loans pegged to the Central Bank repo rate with a longer tenure.
“Even existing borrowers will have the option to change their rate at a marginal cost, with a switch over fee of 0.25 per cent of loan outstanding,” said Majumder.
Now with the advent of PMAY scheme, many developers setting aside a portion of their portfolio for affordable housing.
“Launch of multiple affordable housing projects is reducing the ticket size resulting in an increase in the purchase and SBI is holding to a major market share of the housing loan demand in Bengaluru alone,” he explained.
SBI Home Loan Utsav
To target PMAY scheme, the bank has come out with products like ‘SBI Max Gain’ - the loan is sanctioned as an overdraft with added flexibility to operate the home loan account like SB or Current Account. ‘SBI Privilege’ and ‘Shaurya’ - Privilege offers a home loan product that is tailor made to the requirements of employees of Central/State governments while Shaurya is for defence personnel. The ‘Top Up Loan’ - Upto two home equity loans are allowed to exist together and there is no pre-payment/ pre-closure penalty.
Earlier, the two-day SBI Home Loan Utsav was inaugurated by Abhijit Majumder, Chief General Manager-Karnataka, SBI and General Managers Vincent M Devassy, S Muralidharan and Manju S Bolakani.
At the Utsav, the bank is offering 0.15 per cent concession on interest rate, 100 per cent waiver of processing charges and no legal/valuation fee in respect of all proposals sourced during the expo.
About 40 leading property developers are participating at the two-day SBI Home Loan Utsav.
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