Home-loan borrowers may yet have a reason to cheer!
The country's largest lender, State Bank of India, has hinted that it may consider retaining its much-talked-about 8 per cent home loan scheme, albeit with slight modifications in the product.
"Well, I suppose there can be modifications (in the products), which will be in tune with our liquidity position...normally, we don't kill any product," a top SBI official said in Mumbai.
However, the banking major is yet to formally decide on the extension of the offer whose tenure expires on March 31.
Under the scheme, the lender offers home-loans at as cheap an interest rate as 8-8.5 per cent to new customers.
SBI had initially launched these products in August 2009 for a limited period of three months but later extended it till March 31, 2010, following a huge customer-demand.
The scheme - My Home Campaign - offers an 8 per cent fixed interest rate for 5-years for loans up to Rs 5-lakh, with a maximum tenure of 10-years. For loans above Rs 5-lakh and up to Rs 50-lakh, it offers a fixed rate of 8 per cent during the first year and 8.5 per cent during second and third years.
Reflecting its popularity in the market, SBI garnered a whopping Rs 25,000-crore, disbursing an average of Rs 2,500-crore per month under the scheme. SBI has a home loan portfolio of around Rs 71,000-crore.