State Bank slashes processing fee on home, auto loans by 50%

In an attempt to cash in on the festival season, the State Bank of India slashed its processing fee on home and auto loans by 50 per cent for loans availed from 17 October 2012 to 31 December 2012.

Earlier, the State Bank of India had reduced rates in August and now offers the cheapest home loan after a reduction in its base rate by 0.25 per cent to 9.75 per cent. SBI now offers loans up to Rs. 30 lakh at 10 per cent and loans above Rs. 30 lakh at 10.15 per cent. (Read: SBI cuts rate by 0.25%, relief for home loans before July 2010)

As per experts, many other banks are likely to come out with their festival offers on the back of ample availability of liquidity coupled with subdued growth in corporate lending. So far, banks including Punjab National Bank, Syndicate Bank, Vijaya Bank have floated their special schemes to cash in on the festival demand. (Also Read: ICICI Bank joins festive rush, cuts home loan rates by 1 per cent)