The state-run lending entity State Bank of India has announced special term loan for people affected in Kerala floods to help them rebuild their home. The reduced interest rate at the rate of 8.45% percent per annum will apply on a maximum loan of Rs. 10 lakh that shall be disbursed to residents of flood-hit Kerala for renovation and repair of their homes.
Also, the term loan will entail no processing fee. The special rate of interest rate will be valid for loan applications made on or before November 30, 2018 as per the statement by the lender on Monday.
Also, with effect from September, the state run lender SBI has hiked the marginal cost of funds based lending rate (MCLR) to 8.45%. And depending on the extent of risk involved in the loan type, a spread of between 25-75 bps is added. One basis point is one-hundredth of a percentage point.