State Bank of India (SBI) has announced special interest rate on term loans to residents of flood-hit Kerala for repair and renovation of their homes.
Under this scheme, SBI offers loan of up to Rs 10 lakh at a reduced interest rate of 8.45 percent per annum along with a waiver of the processing fee. The special rate will be applicable to loan applications for repair and renovation submitted on or before November 30, 2018, SBI said in a statement on Monday.
"This will be offered at flat 8.45 percent without any spreads added to it...The saving on the spreads would be between 25-75 basis points (bps)," PK Gupta, Managing Director, SBI told Moneycontrol.
Starting September, SBI hiked the MCLR (marginal cost based lending rate) to 8.45 percent, to which additional 25-75 bps of spread is added considering the risk factors in the loans.
One bps is a hundredth of a percentage point.
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