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03-28-2012, 10:50 AM #1
SBI extends relief to home loan buyers, allows switching to floating rates
State Bank of India (SBI), the country's largest bank, has decided to allow its existing home loan borrowers who are on the prime lending rate to switch over to the new floating rates that are much lower than the prime lending rates.
The switchover will be subject to a small fee - 1 per cent of the outstanding loan amount - a top official said.
The move is expected to help all those borrowers whose home ***** are linked to the prime lending rate which is as high as 14.75 per cent at present.
Currently the floating rate of bank is linked to the base rate, which is 10 per cent. SBI's current floating rates vary from 10.5 per cent for up to Rs 30 lakh loan, 10.75 per cent for between Rs 30 lakh and Rs 75 lakh, and 11 per cent for ***** above Rs 75 lakh.
There is no cap on the loan tenure or the amount of the loan to reprice their loan to a lower rate nor there is any time limit for the switch over.
The bank was prompted to take this measure in the wake of customers making enquiries about shifting their ***** to other banks, according to sources.