SBI has done away with 25 bps mark-up on loan to buy third house
By Joseph Samson
Dec 13, 2012
Print    Email    RSS   

India's largest lender, State Bank of India has removed 25 basis point mark-up charged on retail customers on loans to buy a third or a fourth house.

As the corporate loan growth has become too sluggish, SBI has taken this step to thrust on retail loans, especially home loans.

SBI's current rates on home loans are 10 percent for loans up to Rs 30 lakh and 10.15 for loans above Rs 30 lakh. Banks normally charges higher interest rate if they take a loan to buy a house for the third time.

Bankers say they have come across cases where customers owning ancestral property take a loan to buy a house in the city they work. And they are ready to take a second loan to buy property on repaying the first loan.

A senior bank official said that the decision to give loan to buy home, be it first or third solely depends on the borrower's income and ability to repay.

If the customer has repaid the two earlier loans on time, then probability of default comes down and the customer is considered safe for the bank.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

This is how a bank lends money
J&K Bank raises PLR
NRI Banking in India
Make your home loan repayment easier
12 point conduct checklist for bank and...

Loan offer and we solve your financial problem....
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive