Festive Loan Offers Begin; SBI Shows The Way

Updated: Wednesday, October 14, 2015, 8:51 [IST]

Festive loan offers have begun with the advent of the festive season, with State Bank of India (SBI) kick-starting the season with a few freebies on loans.

State Bank of India is offering zero per cent processing on home loans. This can be a big saving given the fact that most banks charge 0.50 per cent processing fees on home loans. So, the savings can be pretty high on a big ticket loan, like a home loan

Festive Loan Offers Begin; SBI Shows The Way

The bank has also waived-off the processing fee on auto loans to zero, during the festive season. The bank is also offering the lowest home loan rates among banks and financial institutions at 9.5 per cent. This translates into an EMI of Rs 841 per lakh (for switchover of home loan). Car loan on the other hand is being offered at interest rates of 9.8 per cent, again the best in the category. This translates into an EMI of Rs 1650.

Most banks tend to offer festive loans during the season and many private sector lenders are likely to follow State Bank of India.

The likelihood of a processing fee waiver is the best that banks may offer. In fact, Banks have also cut interest rates in the last few days following the Reserve Bank of India's decision to cut repo rates by 50 basis points.

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