SBI cuts auto loan rates, offers deals on others

MUMBAI: Ahead of the festival season,

State Bank of India

(SBI) has announced rate cuts and fee waivers on

various consumer loans

. Interest rates on car and

personal loans

have been reduced to a new low of 7.5% and 9.6% respectively. Also, in a bid to push its

digital platform Yono

, the bank is offering special rates for loans using the bank’s all-in-one mobile app which has seen 5.8 crore downloads till date. The special deals being offered by the bank include a waiver of processing fee on car, gold, personal and home loans in approved projects. SBI earlier offered auto loans at 7.75% and personal loans were mostly in double digits.


“With the economy recovering gradually, we hope to see a boost in consumer spends and at the same time ensure SBI’s helping hand to all those in addressing their financial needs to have a pleasant festive season,” said SBI MD (retail & digital banking) C S Setty. The bank already accounts for one out of every three auto loans and home loans in the country.

For those availing home loans above Rs 30 lakh, the bank is offering credit score-based concessions of up to 10 basis points (100bps = 1 percentage point). Home buyers can avail a 5bps interest concession if they make their application through the Yono app. This provides the additional advantage of providing instant approval based on borrower eligibility, reducing the need for branch visits.

The bank is offering a flexible repayment facility on gold loans, which are available at 7.5%. Those who already have a home loan can take a top-up loan using the mobile app. Besides cutting the rate on auto loans, the bank is offering 100% finance on select models. To pre-approved customers, SBI is using its analytics software which scans transactions in

savings account

. Any customer of the bank can check their eligibility by sending a text message.

As of June 30, 2020, the bank has a deposit base of over Rs 34 lakh crore and advances of nearly Rs 24 lakh crore. SBI has a 34% market share in home loans and nearly 33% in the auto loans segment. The bank has the largest network of over 22,100 branches in India with an ATM network of over 58,500 and total business correspondent outlets of more than 62,200.

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