SBI extends discount on home loans till December; doubles overseas borrowing target to $10 billon
22 September 2011
State Bank of India, the country's largest lender, today announced an extension of a 0.25 percentage point discount it offers on home loans till December. SBI also doubled its overseas borrowings target to $10 billion.
Facing tough competition from rival private banks that offer dual-rate home loans, SBI has extended the 25-basis point concessional home loan scheme till December this year.
The scheme, which offers 25 bps discount on interest rates on its card rate across the tenor of a floating home loans, will now be available till 31 December 2011 against its earlier scheduled closure on 31 October 2011.
"A concession of 0.25 per cent in the card interest rate over the tenor of the home loan is available under the ongoing special home loan campaign up to December 31," SBI said in a website release.
SBI's card rate is at a premium over its base rate or minimum lending rate and is calculated according to the slabs. The card rate now stands at 10 per cent.
The discount scheme offers a borrower a lower interest rate of 10.50 per cent against 10.75 per cent on home loans up to Rs30 lakh. Loans above Rs30 lakh, but up to Rs75 lakh, will attract an interest rate of 10.75 per cent, under the new scheme.