State Bank of India (SBI), the country's largest lender, on Tuesday announced a waiver of the processing fee applicable to car loans in the upcoming festival season, in a bid to boost car sales. The bank also said it is offering the lowest interest rate on car loans starting from 8.70 per cent, with no escalation in interest.
"The SBI has waived processing fees on car loans during the festival season. The bank is offering the lowest interest rate starting 8.70 per cent to customers opting for a car loan, with no escalation in interest," the bank said in a statement.
"For customers applying for a car loan online through digital platforms like YONO/the bank's website, it is providing 25 bps concession on interest rate. Salaried customers can also avail loan upto 90 per cent of the car's on-road price," SBI further said.
The SBI also announced personal loans up to Rs 20 lakh at interest rates starting from 10.75 per cent with the longest re-payment tenure of six years, reducing the EMI burden on its customers.
Additionally, salary account customers can avail pre-approved digital loans up to Rs 5 lakh through digital banking mobile app YONO in four clicks, according to the statement.
SBI also said it is offering education loans up to Rs 50 lakh and up to Rs 1.50 crore for studies in India and abroad respectively at interest rates starting from 8.25 per cent. Customers will be offered the longest re-payment tenure of 15 years which will effectively reduce their EMI burden.
Recently, SBI reduced MCLR (marginal cost of funds based lending rate) by 15 bps due to which overall home loan interest rate is down by 35 bps since April this year.
Currently, SBI offers the cheapest home loan in the country at an interest rate of 8.05 per cent.