Big news for homebuyers! SBI home loan at just 6.8%, no processing fee till THIS date

India's largest lender State Bank of India (SBI) has reached another landmark by crossing the Rs 5 trillion (5 Lakh crore) mark in its home loan business. The bank has set its sight on achieving a home loan AUM of Rs. 7 trillion by FY 2024. The Bank has also launched a new facility for new home loan customers who can get all information on home loans by giving a missed call on 7208933140.

However, the one good thing that is directly related to prospective homebuyers is the bank's low rate of interest on housing loans and waiver of processing fee till March 2021.With interest starting as low as 6.80% per annum, SBI commands a market share of 34% in the home loan segment. On average, the bank onboards around 1000 home loan customers per day that signifies SBI’s commitment towards affordable housing. SBI has also completely waived the processing fee till March 2021for customers availing home loans in SBI approved projects. The Bank is also working on themes like focused development of the Home Loan business, refined analytics for boosting growth, easing home loan journey for customers, and post disbursal engagement with home loan customers.

The Real Estate and Housing Business unit of SBI has grown 5 times in the last 10 years with an AUM of Rs. 89000 crore in 2011 to Rs. 5 trillion in 2021. Despite a massive setback to the real estate sector triggered by pandemic-induced lockdown, the REHBU vertical registered unparalleled growth in the home loan business. SBI witnessed spectacular growth in Home loans in December 2020 with the highest sourcing, sanctions, disbursements, and growth that the bank had ever registered.

Going forward, SBI is also looking at implementing AI, Cloud, Blockchain, machine learning which can play a pivotal role in propelling not only the home loan business of the bank but also other businesses. The bank is gearing up to initiate a co-lending model for home loans which will help boost SBI’s footprints in the unorganized sector. With the use of cutting-edge technology, a vast network of branches, dedicated to Central Processing Centers (CPCs) in 215 centers, bank’s digital and lifestyle platform, YONO, and other enablers, SBI has hit Rs. 5 trillion marks in the home loan business.

Having withstood all downturns, SBI’s home loan market share has been steadily increasing. Moreover, this segment has the lowest default rate indicating excellent asset quality and thereby contributing handsomely to the Bank’s income. SBI forayed into the home loan business in 2004 with a total portfolio of Rs. 17000 crore. A separate Real Estate and Housing Business Unit (REHBU) came into being in 2012 with a total portfolio of Rs. 1 lakh crore. SBI became the market leader in the home loan segment in FY 2014, and since then has continued to take rapid strides in this business segment culminating in the achievement of the Rs. 5 trillion milestones in January 2021.