State Bank of India (SBI) announced its latest Monsoon Dhamaka offer, giving a 100% waiver on processing fees for home loans. It is reduced from the existing processing fee of 0.40%. This waiver is a limited period offer ending on 31 August 2021.
The current interest rates start at a record low of 6.70%, which is not expected to change. Furthermore, to revive customer sentiments, the bank has also provided special concessions for SBI’s YONO app users and female borrowers of 0.05%, five basis points.
The offer is an effort to improve SBI’s home loan portfolio. According to the portfolio outstanding (PoS), in the third quarter of the financial year 2021, there has been a growth of 9.6% in the home loan segment, and amongst all scheduled commercial banks, SBI is the market leader with a 34.51% market share.
The largest lender’s home loan portfolio has surpassed Rs. 5 lakh crore, accounting for a 23% share of all of SBI’s assets. The growth has been partly due to the younger generation aspiring to own a home at a younger age because of increased earnings, switching to nuclear family settings and increased purchases in tier-2 and tier-3 cities.
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