With the government deciding to implement the recommendations of the 7th Pay Commission on wage hike with effect from August 1, State Bank of India has introduced home loan products for Central/ State government/ public sector undertaking employees and defence personnel, whereby they will get the benefit of repaying the loan over a longer period and at softer interest rates.

The bank, in a statement, said government employees will have the flexibility of repaying home loans up to the age of 75 years. Under the existing home loan schemes, repayment is normally available up to the age of 70 years.

The bank has introduced ‘Privilege Home Loan’ for government employees and ‘Shaurya Home Loan’ for Defence Personnel with pensionable service.

Home loan borrowers under the two schemes will enjoy an interest rate concession of five basis points over the Home Loan Card Interest Rate. One basis point is equal to one-hundredth of a percentage point.

This concession is available wherever check-off facility (to debit the borrowers salary account) is extended by the government under a tie-up arrangement with the bank. SBI said it will fully waive off the processing fee. It also added that customers of other banks/ financial institutions can switch over their home loan outstanding balances to State Bank of India under these schemes.

The bank said the burden of servicing equated monthly instalments (EMIs) under the new schemes will be made lighter with lower EMIs in the post-retirement term.

“The launch of ‘SBI Privilege Home Loan’ and ‘SBI Shaurya Home Loan’ products is timed with the notification of the 7th Pay Commission recommendations by the government.

“Surplus income can thus be utilised by government employees and defence personnel towards purchase of new/ better house,” it said.

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