Source: PTI Mar 25 2010 , Mumbai
Country's largest lender SBI today
hinted at extending
its special home loan scheme, which
offers 8 per cent lending rate, with some
modifications beyond March 31, when it is
scheduled to expire.
"Well, I suppose there can be modifications (in the products), which will be in tune with our liquidity position ... Normally, we don't kill any product," a top SBI official told PTI here.
However, the banking major is yet to formally decide on the extension of the offer whose tenure expires on March 31.
Under this scheme, SBI offers home loans at lower interest rate of 8-8.5 per cent to new customers for initial period. Popular among prospective borrowers, the scheme was copied by other lenders ICICI Bank and HDFC.
The scheme, also known as teaser, had kicked up a row after the Reserve Bank expressed displeasure at teaser rate as it discriminates existing borrowers against new ones.
SBI had initially launched these products in August 2009 for a limited period of three months but later extended it till March 31, 2010, following a huge customer-demand.
The scheme -- My Home Campaign -- offers an 8 per cent fixed rate for five years for loans up to Rs 5 lakh, with a maximum tenure of 10 years. For loans above Rs 5 lakh and up to Rs 50 lakh, it offers a fixed rate of 8 per cent during the first year and 8.5 per cent during second and third years.
SBI garnered a whopping Rs 25,000 crore, disbursing an average of Rs 2,500 crore per month under the scheme. SBI has a home loan portfolio of around Rs 71,000 crore.
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