State Bank of India (SBI) has officially announced an extension of its home loan concessions, providing reductions of up to 65 basis points (bps). The extension is applicable until December 31, 2023, as confirmed by the lender through its official website. These concessions are tied to an individual's CIBIL score, a crucial financial metric reflecting credit history. The CIBIL score, ranging from 300 to 900, serves as a numeric indicator of a borrower's financial management capabilities based on past dealings like home loans, personal loans, or credit card transactions. The higher the score, the more favorable the concessions offered by SBI, facilitating a more accessible and cost-effective home loan process for borrowers.
Individuals exploring home loan takeovers, resale properties, and ready-to-move options can now avail an additional 20 basis points (bps) concession if their CIBIL score is 700 and above. Furthermore, for projects tied-up with builders, an extra 5 bps concession is on offer. Notably, specific loan products like Shaurya, Shaurya Flexi, and Shaurya Flexi Vishisht Product come with an attractive perk. Applicants opting for these loans can enjoy an additional 10 bps concession over and above the campaign rates, adding to the appeal of these tailored loan options.
It's important to note that these campaign rates encompass interest concessions already available to women borrowers and product-level concessions built into the card rate. Loans up to 30 lakh with Loan-to-Value ratios greater than 80 percent but less than or equal to 90 percent continue to enjoy a 10 bps premium.
For borrowers with CIBIL scores equal to or greater than 750, SBI is giving a 5 bps concession on card rates for MaxGain and Realty loans. The floor rate remains steady at EBR - 0.75 percent (presently 8.40 percent).
Additionally, SBI's festive fervor extends beyond homes to cars, as the bank has waived processing fees on its car loans. This offer is available until January 31, 2024, as specified on the SBI website. On the social media front, SBI, via its official channel X (formerly known as Twitter) said, "Make your festive season more joyful by driving home your dream car with amazing Car Loan deals!"
SBI employs a one-year MCLR rate of 8.55 percent for auto loans. Car loan interest rates offered by SBI range from 8.80 percent to 9.70 percent. It's essential to remember that the fixed-rate interest applied at loan disbursement will endure throughout the loan tenure, with potential increases if the loan term exceeds five years. Interest calculations are conducted on a daily reducing balance, and SBI car loans offer no prepayment charges or foreclosure fees after the first year.
Under the Flexi pay option, car loan borrowers can select from two choices. The first option entails the initial six months' Equated Monthly Installment (EMI) being set at 50 percent of the regular EMI, provided the loan term is a minimum of 36 months. Alternatively, borrowers can opt for the second choice, where the first six months' EMI amounts to 50 percent of the regular EMI, followed by the next six months at 75 percent of the regular EMI. This option is available for loans with a minimum tenure of 60 months, as per the SBI website.