SBI extends 8 per cent home loan scheme; cuts deposit rates
06 Nov 2009
State Bank of India has extended its 8.0 per cent special home loan scheme till 31 March 2010 following good market response. The bank also announced a reduction in interest rates on term deposits.
SBI, the country's largest lender, has extended the special scheme under 'My Home Campaign', offering 8 per cent fixed interest rate for 5 years for loans up to Rs5-lakh. The maximum tenure will be 10-years.
For loans above Rs5 lakh and up to Rs50 lakh, interest rate will be 8.0 per cent for the first year and 8.5 per cent for the second and third years, SBI said in a press release.
SBI also offers a `MaxGain' plan, under which home loan is given as overdraft with possibility of a saving in interest.
For high-end properties, the bank is offering SBI Advantage Home Loan, which would carry a fixed interest rate of 8.0 per cent during the first year and 9 per cent during second and third years.
These schemes, launched in August, this year, were originally slated to close on 7 November. After the offer period, customers had the option to opt for a fixed rate with a reset frequency of five years or floating interest rate linked to SBI's advance rate for the remaining loan term, SBI said.
