SBI waives processing fee on car loans in festival season

MUMBAI: State Bank of India (SBI), the country's largest lender, on Tuesday announced processing fee waiver on car loans during the upcoming festival season in a bid to boost car sales.

The bank is also offering the lowest interest rate starting 8.70 per cent on car loans, 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. For customers applying for a car loan online through digital platforms like YONO/ the bank's website, it is providing 25 bps concession on the interest rate. Salaried customers can also avail loan up to 90 per cent of the car's on-road price," the lender said in a statement.

To bring more smiles, the SBI has also announced personal loan up to Rs 20 lakh at the lowest interest rate starting from 10.75 per cent with the longest re-payment tenure of 6 years, reducing the EMI burden on customers.

Additionally, salary account customers can avail pre-approved digital loans up to Rs 5 lakh through YONO (the SBI's integrated digital banking app) in four clicks, said the statement.

The bank is also offering education loan up to Rs 50 lakh and up to Rs 1.50 crore for studies in India and abroad respectively at an interest rate starting 8.25 per cent. Customers will be offered the longest re-payment tenure of 15 years which will effectively reduce their EMI burden.

Recently, the 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 2019. Currently, the bank offers the cheapest home loan with an interest rate of 8.05 per cent as repo rate linked home loan and this rate will be applicable to all existing and new loan from September 1.