If you are a customer of State Bank of India (SBI), the country’s largest bank, and planning to apply for a home loan, here’s good news for you. SBI has announced a reduction in home loan processing fees. The bank is offering a 50% to 100% concession on various home loan types, including Regular Home Loan, Flexipay, NRI, Non-Salaried, Privilege, and Upon Home. The last date to avail the processing fee concession is 31st August 2023.
SBI provides concession on processing fee
As per the official website of SBI, there is a 50% discount on the card rate for all home loan variants and top-up loans. The processing fee ranges from a minimum of Rs. 2,000 to a maximum of Rs. 5,000 plus GST. However, for takeover, resale, and ready-to-move-in properties, the processing fee discount is 100%. It’s important to note that there is no discount on processing fees for Insta Home Top-Up, Reverse Mortgage, and EMD.
Regular Home Loan Processing Fee
The processing fee for SBI home loans without any discount is calculated at 0.35% of the loan amount plus applicable GST, which amounts to Rs. 2,000 plus GST. The maximum processing fee is Rs. 10,000 plus GST. For individuals with CIBIL scores of 750-800 and above, the home loan interest rate without any concession is 9.15%.
SBI raises loan rates
It should be noted that SBI has recently increased the MCLR rate, affecting millions of customers. This increase in MCLR has led to higher interest rates on various loans, including home loans. As per information available on the bank’s website, the MCLR rate now ranges between 8% and 8.75%. SBI had previously increased the MCLR rate in March as well.