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SBI halves retail loan processing fee
In a bid to push up the loan demand State Bank of India, the country's largest bank, today announced that it was reducing processing fees on home and auto loans by half under a festival offer.
In a bid to push up the loan demand State Bank of India (SBI), the country's largest bank, on Wednesday announced that it was reducing processing fees on home and auto loans by half under a festival offer. This offer is applicable on loans taken between October 17 and December 31.
"With this reduction, the bank is quoting the lowest processing fee on both home and auto loans," SBI said.
For home loans up to R25 lakh, the processing charge has become 0.125% of the loan amount, from 0.25% earlier. For loans between Rs 25 lakh and Rs 75 lakh, the fee would be a flat Rs 3,250 against Rs 6,500 earlier, and for loans above Rs 75 lakh, it would be Rs 5,000, as compared to Rs 10,000 earlier.
For automobile loans, the processing charge has been slashed to 0.255% of the loan amount against the previous 0.51%.
Last month, SBI had reduced its base rate or minimum lending rate by 0.25% to 9.75% following the Reserve Bank of India's monetary policy action.
SBI now offers loans up to Rs 30 lakh at 10% interest rate, and and loans above Rs 30 lakh at 10.15%.
