State Bank of India on Tuesday launched two new home loan products - SBI Easy Home Loan and SBI Advantage Home Loan, with processing fee for both waived till September 30.
While SBI Easy Home is for loans up to Rs 30-lakh, SBI Advantage Home is for homebuyers in the premium segment above Rs 30-lakh, a press release issued here said.
In SBI Easy Home Loan, the interest rate charged on a daily reducing balances would be 8 per cent per annum for the first year and 9 per cent per annum fixed for the second and third years.
From the fourth year onwards, the customer can choose between a floating rate of 2 per cent below the State Bank Advance Rate (SBAR) and a fixed rate of 1 per cent below SBAR with a five-year reset, the release said.
The indicative EMI for the first year would be Rs 836 and for the next two-years Rs 898 for a loan tenure of 20-years. SBAR is 11.75 per cent with effect from June 29.
SBI Advantage Home, targeted at premium home buyers (above Rs 30-lakh), will have an 8 per cent per annum fixed interest for the first ear and 9.5 per cent per annum fixed or the second and third years, the release said.
From the fourth year onwards, the customer can choose between a floating rate at 1 per cent below SBAR and a fixed ate of 0.5 per cent below SBAR with a five-year reset, the release said.
The indicative EMI for the first year would be Rs 836 and for the next two years Rs 929 for a loan tenure of 20-years.
The reduction in SBAR with effect from June 29 would bring down the effective floating rates for existing borrowers by 0.50 per cent, the release said.
The bank said that "interest rates are fixed for 36-months, enabling the customer to firm up his outflows. The risk of rise in interest rate is eliminated in the medium-term."
SBI has a home loan portfolio of over Rs 56,000-crore. The growth rate last year was 21 per cent and SBI was the largest originator of home loans with a growth of Rs 9,370-crore, the release said.
SBI had earlier launched a scheme called SBI Special (in December 2008), to stimulate growth in the affordable housing sector, which is scheduled to close on Tuesday.