SBI Offers Relief To Customers On Home Loan Rates, KYC Update; Check Details Here

State Bank of India to keep interest rates benign as long as possible with a view to supporting the economic growth, informed chairman Dinesh Kumar Khara.

Representative Photo

In the latest updates from the country’s largest lender, State Bank of India (SBI) has gone ahead to offer relief on several fronts starting from slashing home loan interest rates, permitting KYC updation through mail or post, and the bank ensuring to keep the interest rates benign as long as possible to support the economy and help customers facing difficulties due to lockdown measures implemented in states during the second wave of coronavirus pandemic.

What does cut in home loan mean to SBI customers?

The bank has reduced the lower range of home loan interest rates to 6.70 percent from 6.95 percent.  SBI has announced exclusive interest rates on home loans starting from 6.70 percent onwards. The women borrower will get a special 5 bps concession while customers can apply for a loan from the ease of their home through the YONO spp to earn an additional interest concession of 5 bps, according to SBI.

C S Setty, MD (Retail & Digital Banking) said, “SBI, being the market leader in home finance, assumes the ownership in bolstering consumer sentiments in the home loan market. The affordability for the consumer increases immensely with the present home loan interest rate offerings which reduce the EMI amounts substantially. I am sure these measures will give a fillip to the real estate industry too".

If you want to avail an SBI home loan above Rs30 lakh and up to Rs 75 lakh, the interest rate will be 6.95 percent while for a home loan above Rs 75 lakh, the interest rate will start from 7.05 percent.

What is the direction on KYC update?

In a communication to the chief general manager of all its 17 local head offices dated April 30, the SBI said it has been advised to accept KYC updated requests through mail or post without the physical presence of the customer in the branch in view of a resurgence in Covid-19 infections.

It is expected that other banks may follow suit. In view of Covid-19 restrictions or lockdown in several states, branches can carry KYC updation on the basis of documents received from customers through the post.

In no case the customer should be asked to personally visit the branch for KYC updation, it said. "Please ensure that partial freezing of CIFs due to KYC updation is not done up to May 31, 2021," the bank noted.

Meanwhile, the bank will try to keep the interest rates benign as long as possible with a view to supporting economic growth. On the impact of the second wave of COVID-19 on non-performing assets of the bank, the SBI chairman Dinesh Kumar Khara said that as the lockdown was not pan-India, one will have to wait and watch to assess its impact on the banking sector.

According to the PTI report, the SBI chief informed that on basis of multiple variables including inflation that have a bearing on the interest rates, the bank will ensure support to the growth initiatives. "To really ensure that happens, we will try to keep the soft interest rate regime for as long as possible," he added.

30 lakh and 6.95 percent for loans above Rs 30 lakh and up to 75 lakh. The big-ticket loans above Rs. 75 lakh would get home loans at 7.05%, the bank said in a statement.