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In a bid to deploy the incremental deposits of ₹1.65 lakh crore received by its branches between November 9 and December 31, 2016 (demonetisation period), State Bank of India has announced a slew of home loan products.
Addressing the media in Mumbai, SBI Chairman Arundhati Bhattacharya observed that the bank’s loan growth guidance of 11-12 per cent given prior to demonetisation had to be revised downwards.
She said that the bank’s loan growth as on date was in the 6.7-6.8 per cent range and would go up to a maximum of 8-9 per cent if the current rate cut of 90 basis points was considered.
The bank would be in a better position to provide a growth guidance only after its third quarter results given that only a quarter was left to grow its loan book, she added.
On the products that SBI plans to launch, she said: “One new product that we will be setting out will be the SBI bridge loan and this loan will be to help people who want to upgrade to a bigger house but have not yet been able to sell their existing house.
“Many-a-time you find that people want to upgrade from 1 BHK to 2 BHK and from 2 BHK to 3 BHK. For people like that we have created a bridge loan. Those with existing property can take a loan for a bigger house, find a buyer within two years and sell the existing house/liquidate the loan.”
Also, on the anvil is a top-up loan for those with a CIBIL score (index of creditworthiness) of 700 and above wherein 5 per cent of the home loan amount would be disbursed.
Home loans for the non-salaried segment is also being introduced.
“The non-salaried segment has often suffered because they have not been able to show the kind of salaries that give them those EMI/NMIs. So, we are relaxing the EMI/NMI for them and making a product that they will also find more attractive,” Bhattacharya summed up.
EMI/NMI is a ratio which shows the EMI (equated monthly instalment) payout as a percentage of a person’s post-tax net monthly income (NMI) and is usually multiplied by 100 to approximately arrive at a person’s home loan eligibility. Higher the NMI, higher is the loan eligibility.
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