State Bank of India's subsidiary, State Bank of Bikaner and Jaipur (SBBJ) has planned to offer education loans to student and small and medium enterprises (SME) online.
The Associate bank of SBI intents to replicate its ‘home loan or car loan application online and get interest concession model' to student loans and small ticket SME loans (up to Rs 1 crore).
Mr. Shiva Kumar, Managing Director of SBBJ said home and car loan customers are getting accustomed to the concept of applying retail loans online. Hence, the bank intends to extend this concept to other products too.
Currently, SBBJ is offering customers online home loan at concession interest rate of 10 basis point i.e. they are offering at 10.40 per cent interest against the card rate of 10.50 per cent. And, car loan (over Rs 10 lakh) at a 25 basis point concession i.e. the customers can get loans at 10.25 per cent against card rate of 10.50 per cent.
"Online retail loans are gradually gaining traction. Home loans and auto loans are sanctioned in 20 minutes and 10 minutes, respectively. Customers can apply for loans from the comfort of their homes," said Mr. Shiva Kumar.