SBI cuts processing fees on home loans

In today’s announcement, SBI has cut 50% of the processing fees for home loans and auto loans. The competition on home loans segment is heating up after other major players in the home loans market HDFC, AXIS and ICICI has reduced the interested rates and announced lucrative schemes to attract the customers. Note that few weeks back ICICI has announced the cash back offers for the new home loans customers.

SBI has already offers the very lower rate on home loans among other PSU and private players in the segment. After RBI’s announcement on abolishing the processing fees on home loans, the switching between banks for the customers become much easier. This also creates lot of competition among the banks. Thanks to RBI for coming up with good ideas to help the customers!!.

SBI will not charge Rs 1,000 as processing fees for loans up to Rs 25 lakh, Rs 3,250 for loans between Rs 25 lakh and Rs 75 lakh, and Rs 5,000 for loans above Rs 75 lakh. It would charge a flat fee of Rs 1,000 from borrowers who plan to switch to it. For car loans, SBI would charge a minimum of Rs 510 and a maximum of Rs 5,100 as processing fee. The reduced processing fee will be in effect till December 31.

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