SBI announces special loan benefits

India’s biggest bank State Bank of India (SBI) has announced special offerings ahead of this festive season for retail customers across different product categories like auto/car loan, personal loan, education loan and home loan.

Reportedly, SBI is offering “lowest” interest rate starting from 8.70% to customers opting for car loan, with no escalation in interest, the bank said. For customers applying online through SBI’s digital platform like YONO/its website, the bank is providing 25 bps concessions on interest rate.

On the personal loan front, SBI is offering loan up to Rs. 20 lakh with interest rate from 10.75% with repayment tenure of up to six years. Additionally, salary account customers of SBI can avail pre-approved digital loans up to Rs. 5 lakh through its YONO platform.

It is also offering education loan at an interest starting from 8.25% for loan up to 50 lakh for studies in India and up to 1.50 crore for studies abroad respectively, with repayment tenure of 15 year.

Moreover, SBI claims to offer “cheapest home loan” with interest rate of 8.05% as RBI’s repo rate linked home loan. This rate will be applicable to all existing and new loan from 1 September, 

Interestingly SBI is also extending loan repayment time for struggling automobile dealers by 15 to 30 days amid slowing car sales. Many automobile dealers are facing difficulty in repaying loans as per schedule as sales have fallen sharply. India’s passenger vehicle industry recorded its worst performance in nearly 19 years in July as sales fell 31%.

PK Gupta, managing director of SBI said “Normally, the repayment period is 60 days. So, we extend it to 75 days for some dealers and to 90 days for a few others”.

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