SBI waives processing fees, cuts home loan interest rate to 6.7%

As part of its festive season, the State Bank of India (SBI) will be offering credit score linked home loans at 6.7%, irrespective of the loan amount, as reported by The Economic Times. 
 
According to a press release issued by SBI on September 16, earlier a borrower availing a loan greater than Rs 75 lakh, had to pay an interest rate of 7.15%; now with the introduction of the festive offers, a borrower can avail home loan for any amount at a rate as low as 6.7%.
 
Further, interest rate applicable for a non-salaried borrower was 15 bps higher than the interest rate applicable to a salaried borrower. SBI has said that it has removed this distinction between a salaried and a non-salaried borrower. "Now, there is no occupation-linked interest premium being charged to prospective home loan borrowers. This would lead to a further interest saving of 15 bps to non-salaried borrowers," stated the bank.
 
The lender has also waived off the processing fees completely and will be offering interest concession based on the credit score of the borrower.
 
The bank also cut its base rate and prime lending rate. According to the SBI website, with effect from September 15, 2021, SBI's base rate will be 7.45% and its prime lending rate will be 12.2%.
 

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Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
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Debashis Basu
Founder