Money & Banking

SBI Chennai Circle looking to boost affordable home loans

Our Bureau Chennai May 9 | Updated on January 11, 2018 Published on May 09, 2017

With State Bank of India (SBI) announcing attractive interest rates for buyers in the affordable home segment, its Chennai Circle has set an ambitious target in disbursements, while contemplating a tie-up with the Builders Association of India (BAI).

During the fourth quarter of 2016-17, the Chennai Circle disbursed 200 loans with ticket size of ₹22-30 lakh. Now it is targeting to disburse about 10,000 loans in the affordable segment in the next few months.

“With some minor promotional activity, we could do about 200 loans, which were beyond our expectations. Now with attractive rate and aggressive campaigns, we hope to achieve higher disbursements,” B Ramesh Babu, Chief General Manager, SBI, told BusinessLine at an event where the bank’s latest home loan rates were announced.

SBI sees growing interest among builders to launch affordable home projects. “We see dwelling units in the price range of ₹10-15 lakh come up in the State. We also expect our attractive rate to spur some demand,” he added.

SBI has been interacting with builders in connection with affordable home projects. It sees more such projects coming up in Chennai and Coimbatore in the immediate term.

The bank has an all-India tie-up with the Confederation of Real Estate Developers Associations of India (Credai) and is supporting the affordable home projects of its members.

It is now looking to enter into a tie-up with BAI to drive affordable projects.

On Monday, SBI reduced its home loan interest rate to 8.35 per cent from 8.60 per cent for loans up to ₹30 lakh.

This is a special interest rate and will be applicable till July 31.

Published on May 09, 2017
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