SBI cuts processing charges on home, auto loans by 50 %

State Bank of India (SBI) cuts 50 percent of the processing fee on home and auto loans to cash in on festive season demand.

Offer available on home & car loans from October 17 to December 31′ 2012.

For home loans up to Rs 25 lakh, the processing charge has become 0.125 percent of the loan amount from 0.25 percent, it said.

In case of loans between Rs 25 lakh and Rs 75 lakh, the processing fee would be Rs 3,250 as against Rs 6,500 while loans above Rs 75 lakh, it would be flat Rs 5,000 as compared to Rs 10,000 per application earlier.

With regard to auto loan, the processing charge has been slashed to 0.255 percent of the loan amount as against 0.51 %.

Last month, SBI reduced its base rate or minimum lending rate by 0.25 % to 9.75 % following RBI’s monetary policy action.

The decision by the country’s largest lender come a day after the Reserve Bank reduced Cash Reserve Ratio (CRR) by 0.25 percent to 4.5 %.

SBI now offers loans up to Rs 30 lakh at 10 percent and loans above Rs 30 lakh at 10.15 %.