State Bank of Bikaner and Jaipur (SBBJ) plans to offer loans to students and small and medium enterprise (SME) online.
The Associate Bank of State Bank of India intends to replicate its ‘make a home or a car loan application online and get interest concession model’ to student loans and small ticket SME loans (up to Rs 1 crore).
SBBJ Managing Director Shiva Kumar said home and car loan customers are gradually getting accustomed to the concept of applying retail loans online. Hence, the bank plans to extend the concept to other products.
Currently, the Jaipur-headquartered bank offers customers applying home loans online a 10 basis points interest rate concession — that is they will get loans at 10.40 per cent interest against the card rate of 10.50 per cent. Similarly, SBBJ is offering customers applying car loans (over Rs 10 lakhs) online a 25 basis points concession -- that is they will get loans at 10.25 per cent interest against the card rate of 10.50 per cent.
“Online retail loans are gradually gaining traction. Home loans and auto loans are sanctioned in 20 minutes and 10 minutes, respectively.
Customers can apply for loans from the comfort of their homes,” said Shiva Kumar.
If all the required documents are in order then the turnaround time for disbursement is three days for home loans and 24 hours for auto loans. In October, the bank received 167 car loan applications and 57 home loan applications online, he added.