Country's largest lender, State Bank of India (SBI) on 31 July said the lender has waived the processing fees on home loans till August 31. There will be a 5 bps concession for a home loan applied through YONO App, the lender said, adding, women borrowers are eligible for a 5 bps concession. One bps is one hundredth of a percentage point.
This is a significant reduction from the existing processing fees of 0.40 percent. SBI's home loan interest rates start at just 6.70 per cent, the lender said in a release. The "Monsoon Dhamaka Offer" is for a limited period ending on August 31, SBI said.
SBI had waived off the processing fee completely in September last year too. There is an aggressive competition among leading banks to chase retail customers. Banks perceive individual loans as a safer bet compared with big ticker corporate loans.
Announcing the waiver in processing fee, C.S. Setty, managing director of SBI said the offer of processing fee waiver will "facilitate and encourage home buyers to take decision with ease, as interest rate is at its historic low."
SBI's home loan portfolio has crossed the milestone of Rs 5 lakh crore. As on March 31, 2021, the bank has a deposit base of nearly Rs37 lakh crore with CASA (current, savings account) ratio of over 46 per cent and advances of more than Rs 25 lakh crore. Among all Scheduled Commercial Banks, SBI commands a market share of 34.51 per cent in home loans.