To mark India’s Independence Day, the State Bank of India has announced lower interest rates, waived processing fees on loans, and higher deposit rates for specified tenures. In a statement, the bank stated that it will forgo processing fees for its auto loan customers and that it will provide up to 90% on-road financing. Customers who use the bank’s YONO app to apply for a car loan will be eligible for a special interest reduction of 25 basis points (bps). SBI announced that YONO customers will be able to get car loans with interest rates starting at 7.5 percent per year.
Those asking for gold loans will eventually see their interest rates reduced by 75 basis points to 7.50 percent. A basis point is equal to 0.01% of a percentage point. Customers who apply for gold loans through the YONO app will not be charged any processing fees.
The bank also stated that processing fees on house loans would be waived until August 31, 2021. Its home loan rates begin at 6.70 percent per year. Customers who take out personal or pension loans will not be charged any processing costs. Frontline healthcare professionals are expected to receive a 50 basis point discount on personal loans, which will soon be available for car and gold loans as well.
SBI has also introduced ‘platinum term deposits’ for retail depositors, which offer an additional interest rate of up to 15 basis points on tenors of 75 days, 75 weeks, and 75 months from August 15, 2021 to September 14, 2021.In a statement, the bank’s managing director for retail and digital banking, C S Setty, said, “We believe that these products will help customers save more on their loans while also adding value to their seasonal festivities.”