SBI slashes auto loan rates and offers deals on others

MUMBAI: Ahead of the festival season, the State Bank of India (SBI) announced rate cuts and fee waivers on various consumer loans. Interest rates on auto and personal loans were reduced to new lows of 7.5% and 9.6% respectively. Additionally, in a bid to push its Yono digital platform, the bank is offering special rates for loans using the bank’s all-in-one mobile app which has seen 5.8 crore downloads so far. this day. Special offers offered by the bank include waiver of processing fees on auto, gold, personal and real estate loans in approved projects. SBI previously offered auto loans at 7.75% and personal loans were mostly in the double digits.
“As the economy gradually recovers, we hope to see an increase in consumer spending and at the same time ensure SBI’s assistance to all who meet their financial needs to have a pleasant holiday season,” SBI said. MD (retail & digital banking) CS Setty. The bank already accounts for one in three car loans and home loans in the country.
For those availing home loans above Rs 30 lakh, the bank offers concessions based on credit rating of up to 10 basis points (100 basis points = 1 percentage point). Homebuyers can get a 5 basis point interest concession if they apply through the Yono app. This has the added benefit of providing instant approval based on borrower eligibility, reducing the need for branch visits.
The bank offers a flexible repayment facility on gold loans, which are available at 7.5%. Those who already have a mortgage can take out additional credit via the mobile application. In addition to reducing the rate of car loans, the bank offers 100% financing on certain models. For pre-approved customers, SBI uses its analysis software which analyzes savings account transactions. Any bank customer can check their eligibility by sending an SMS.
As of June 30, 2020, the bank had a deposit base of over Rs 34 lakh crore and advances of almost Rs 24 lakh crore. SBI holds a 34% market share in mortgage loans and nearly 33% in the car loan segment. The bank has the largest branch network of over 22,100 branches in India with an ATM network of over 58,500 and a total number of business correspondents of over 62,200.

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