With the festival season round the corner, banks have started cutting interest rates to attract customers.
The State Bank of Hyderabad (SBH) has launched a festive campaign, which runs from September 17 to December 31, for its home and car loan schemes.
The bank has slashed interest rates by up to 50 basis points on both these segments.
Further, no processing charges would be levied for car loans and there is a 50 per cent concession on charges for home loans, the bank said in a press release.
SBH has about 1484 branches across the country, where the offer will be valid.
In the home loan scheme, interest rate for loans up to Rs 30 lakh has been slashed from 10.75 per cent per annum to 10.50 per cent, and for loans above Rs 30 lakh, the rate is down from 11 per cent to 10.50 per cent.
The rate of interest is ‘floating’ and applicable for all tenors.
Now, for every Rs 1 lakh, the customer has to pay an EMI (equated monthly instalment) of Rs 915 for a 30-year loan, as against Rs 934 so far.
As for car loans, the rate for a seven-year loan has been reduced from 11.25 per cent to 10.75 per cent.
For every Rs 1 lakh, the customer has to pay an EMI of Rs 1,699 as against Rs 1,725 until now, the release said.
Keywords: State Bank of Hyderabad, SBH home loan scheme, SBH festive campaign, SBH interest rate cut
Comments:
I have a home loan with State Bank. I am paying 12.75%, while new
customers are getting loans for 10.4% or so. SBI is taking their
existing customers for a ride. I was offered a "one-time" payment
offer to reduce my rate to 11.25% by paying 1% of outstanding. What a
joke! By paying 0.5% of the outstanding, I can move the loan to ICICI
or HDFC at 10.5%. I can even get a 10year fixed rate loan with HDFC at
11%. The State Bank management has their head in the clouds. They do
not realize that there is no penalty for switching loans nowadays. If
you continue with your head-in-the-clouds attitude, you will lose a
lot of customers and goodwill. Customers will think twice before
joining you regardless of low rates during festive offers.
Please Email the Editor