Country’s largest lender, State Bank of India (SBI) on 31 July said the lender has waived the processing fees on home loans till August 31. There will be a 5 bps concession for a home loan applied through YONO App, the lender said, adding, women borrowers are eligible for a 5 bps concession. One bps is one hundredth of a percentage point.

This is a significant reduction from the existing processing fees of 0.40 percent. SBI’s home loan interest rates start at just 6.70 per cent, the lender said in a release. The “Monsoon Dhamaka Offer” is for a limited period ending on August 31, SBI said.

SBI has always been at the forefront of reviving consumer sentiments by bringing out various offers from time to time. There could not be a better time to buy a house, considering SBI Home Loan interest rates start at just 6.70%.

How does the offer benefits home-buyers

Individuals who apply for a home loan will gain substantially through the limited period offer. The public lender said that the offer has been introduced to revive consumer sentiments.

It may be noted that SBI had also announced a 5 bps (0.05 per cent) concession for home loans applied through its Yono app under the offer. Women borrowers will be eligible for an additional concession of 0.05 per cent (5 basis points/bps) on the loan rate.

We believe this offer of processing fee waiver will facilitate and encourage home buyers to take decision with ease, as interest rate is at its historic low,” said C.S. Setty, MD (R&DB), State Bank of India. 

Earlier this year, the bank announced the reduction on its interest rates on home loans from 6.95 per cent to 6.70 per cent, and said that women borrowers are eligible to receive a special concession of five basis points. 

State Bank of India is currently trading at Rs435.35 up by Rs3.65 or 0.85% from its previous closing of Rs431.70 on the BSE. The scrip opened at Rs435.40 and has touched a high and low of Rs436.60 and Rs431.85 respectively.