SBI’s 8% Home Loan Scheme will End on November 8th

The country’s largest lender, State Bank of India, will not extend its eight per cent home loan scheme, the cheapest in the country, beyond November 8. SBI had introduced its Happy Home loan scheme, that allowed the borrower to freeze the eight per cent interest rate for a year, in February this year. In August, the bank had introduced another home loan scheme under a ‘My Home’ campaign, in which it offered loans up to Rs 5 lakh and tenure for up to 10 years, at an eight per cent per annum fixed rate during the first five years, among other offers.

However, the My Home campaign will come to an end on November 8. “The bank has taken a decision that the eight per cent home loan scheme will not be extended beyond November 8. It is yet to take a decision on the new interest rates. It is likely to be more than eight per cent,” said sources at SBI. Under the My Home Campaign, the bank was offering home loans in three segments, namely, SBI Hi-Five Home Loan, SBI Easy Home Loan and SBI Advantage Home Loan. Under the SBI Hi-Five Home Loan, it has been offering loans up to Rs 5 lakh and tenure for up to 10 years at an eight per cent per annum fixed rate during the first five years.

From the 61st month onwards, the rate will be a floating one, at an interest rate 2.75 per cent below the State Bank Advance Rate (SBAR) and 1.25 per cent below SBAR.

In SBI Easy Home Loan, for maximum loan of Rs 50 lakh and tenure of up to 25 years, the interest rate is fixed at eight per cent per annum during the first year and at 8.5 per cent during the second and the third year. After three years, the rate will be 2.75 per cent below SBAR (for floating rate) and 1.25 per cent below SBAR for fixed ones, with a reset frequency of five years. For loans above Rs 50 lakh and tenure of up to 25 years ( SBI Advantage Home Loan), the rate is fixed at 8 per cent per annum during the first year and 9 per cent per annum during the second and third year. From the fourth year on, the rate will be 1.75 per cent below SBAR (for floating rate) and 0.75 per cent below SBAR for fixed ones, with reset frequency of five years.

Source: http://www.indianrealtynews.com

SBI not to change home loan rates immediately

November 05, 2009 Country's biggest lender State Bank of India (SBI) did not have any immediate plans to revise home loan interest rates, including 8 per cent special offer which is slated to end this week.

"We have decided to keep the rates at the same level in the immediate future (including the eight per cent scheme). The current rate structure will continue," SBI chief general manager P Nandakumar said.

Nandakumar was responding to media reports that SBI may withdraw the special home loan offer at 8 per cent interest rate. The bank had earlier introduced a special offer at 8 per cent fixed interest rate for loans up to Rs 5 lakh for five years.

It also offers loans up to Rs 50 lakh at 8 per cent for the first year and at 8.5 per cent in the second and third years. The scheme is supposed to end on November 7.

On the other hand, SBI is understood to have plans to come with some special offers on home loans in the near future.

The bank had seen a 23.40 per cent growth in its home loan portfolio in the quarter ended September 30.

On the back of a healthy growth in net interest income and core fee income, State Bank clocked a 10.19 per cent jump in its standalone net profit at Rs 2,490-crore in Q2 FY10.
Source: www.realtyplusmag.com