State Bank of India (SBI) has issued a statement, clarifying there's no hike in home loan interest rates and that limited period special concessions offered during the festival season have come to end, following which original interest rates starting 6.95 per cent have been restored. India's largest public sector also said that special concession for women borrowers remains the same.
"In the last few days, there have been news items reported in the press including media regarding hike in SBI Home Loans Interest Rates. In this regard we clarify that limited period special concessions offered during the festive season have come to an end on 31 March 2021 and thereafter withdrawn," SBI said in a statement.
The bank clarified its home loan interest rates have not been hiked but restored to previous levels.
The State Bank of India (SBI) this week revised its home loan rates, hiking them by 25 basis points (bps) or 0.25 per cent to 6.95 per cent from 6.70 per cent earlier for loans up to Rs 75 lakh-Rs 5 crore. The rates were effective from April 1, the bank said on its website.
SBI last month had announced a special offer on home loans, which was valid until March 31. Under this festival offer, SBI was offering home loans at a 6.70 per cent interest rate. The bank had also waived off a 100 percent processing fee during the period.
After the restoration of the old interest rates, the bank will now impose a consolidated processing fee, which will be 0.40 per cent of the total loan amount plus applicable GST, subject to a minimum of Rs 10,999 and a maximum of Rs 30,000 plus GST.
The state-owned SBI is the largest bank in terms of assets, deposits, branches, customers, and employees. Being the largest mortgage lender in India, SBI's home loan portfolio has crossed Rs 5 lakh crore milestone. In-home loans, commands over 34% market share.
The Mumbai-based PSB commands over 1/4th of the market share and serves over 44 crore customers via 22,000 branches, 58,500 ATMs, 66,000 outlets. The bank has 11 subsidiaries including SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, etc, and operates across time zones through 233 offices in 32 foreign countries.
SBI's YONO app, an integrated digital and lifestyle platform, has crossed the 7.4 crore downloads mark.