State Bank of India (SBI) today reduced the processing fee on home and auto loans by 50 per cent to cash in on festive season demand.
This offer is applicable on loans availed from October 17 to December 31, SBI said in a statement.
“With this reduction, the bank is quoting the lowest processing fee on both home and auto loans to our esteemed customers,” it said.
For home loans up to Rs 25 lakh, the processing charge has become 0.125 per cent of the loan amount from 0.25 per cent, it said.
In case of loans between Rs 25 lakh and Rs 75 lakh, the processing fee would be Rs 3,250 as against Rs 6,500 while loans above Rs 75 lakh, it would be flat Rs 5,000 as compared to Rs 10,000 per application earlier.
With regard to auto loan, the processing charge has been slashed to 0.255 per cent of the loan amount as against 0.51 per cent.
Last month, SBI reduced its base rate or minimum lending rate by 0.25 per cent to 9.75 per cent following RBI’s monetary policy action.
The decision by the country’s largest lender come a day after the Reserve Bank reduced Cash Reserve Ratio (CRR) by 0.25 per cent to 4.5 per cent.
SBI now offers loans up to Rs 30 lakh at 10 per cent and loans above Rs 30 lakh at 10.15 per cent.
Yesterday another public sector bank Punjab & Sind Bank had also announced festival bonanza scheme for home and auto loans.
The scheme, as per the Punjab & Sind Bank statement, is applicable to fresh and takeover cases of such loans made during the current festival season beginning October 15.
There is no maximum ceiling on the amount of loan and number of vehicles to be financed by the bank. It further said that no processing fee is levied on these loans.