State Bank of India has reduced rates on loans across varied segments in retail including loans for transport operators and farm mechanisations. The bank has cut ratesbetween 50 and 100 basis points as part of its festive offer for all new loans sanctioned between October 8 and December 31 last year.
Home loans are now cheaper by 100 bps, depending upon the maturities and amount. The bank also gives additional discount if the salary account is with the SBI and if a higher margin is made available.
Car loans and two-wheeler loans have also been slashed by 100 bps depending on the amount and maturity of loan. Loans for new car loans are now at 11% to 12% depending on the loan amount, maturity and type of loans. Similarly personal loans are now cheaper by 0.50% to 1.00%. In addition to the above the bank is offering 50% concession in processing charges on all the personal segment loans.
?SBI Reverse?
State Bank of India will launch its reverese mortgage loan product ?SBI Reverse? on October 12 at a fixed rate of 10.75%. The product is designed for senior citizens, above the age of 60 years.
They can avail loans, that will be disbursed in monthly or quarterly instalments or in lumpsum payment at the beginning, against the security of their self-acquired, self-occupied houses. The loan will be given jointly if the spouse is alive.