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Last Updated : Oct 11, 2019 10:08 AM IST | Source: Moneycontrol.com

SBI brings back processing fee on home loans prior to festive waiver period: Report

"The waiver will continue for proposals sourced up to October 15," the circular read

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State Bank of India (SBI) is bringing back processing fees on home loans, top-up plans and corporate and builder loans, as per a Times of India report.

In an internal circular, SBI informed that the full waiver of the consolidated processing fee, which was to last through the festive period till December, has been withdrawn.

"The waiver will continue for proposals sourced up to October 15," the circular read.

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The processing fee would be close to 0.4 percent, which on an average for individual borrowers would work out anywhere between Rs 10,000 and Rs 30,000. For builders, a flat Rs 5,000 charge has been levied, a source told the paper.

The move comes on the back of significant downtrend in interest income after the Monetary Policy Committee (MPC) cut the repo rate by 25 bps on October 4, the source added.

India’s largest public lender had on July 1 launched an automatic software pegging home loans to the dynamic moving rate. This was rolled back on August 1. On October 1, it rolled out another software which pegged loans to the RBI’s benchmark rate.

Other charges such as prepayment charges and Central Registry of Securitisation Asset Reconstruction and Security Interest registration fee may also be increased later.

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First Published on Oct 11, 2019 09:44 am
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