SBI new plan for existing home loan customers

India's largest bank State Bank of India (SBI) has allowed their existing home loan customers to reprice their existing loans at lower rates which will be a relief for the customers. This can be availed by the existing home loan customers by paying 1% of the outstanding amount. This would mainly to help all borrowers whose home loans interest is as high as 14.75% at present. At present the floating rate of SBI bank is linked to the base rate of 10%. Its current floating rates vary from 10.5% for loan amount up to Rs 30 lakh, 10.75% for between Rs 30 to 75 lakh, and 11% for loans above Rs 75 lakh.
"We thought of giving an option to our existing home loan borrowers who are on the prime lending rate to switch over to the new floating rates that are much lower than our prime lending rates. Anybody can reprice their loan by paying a 1 per cent of their outstanding as an upfront fee," managing director and chief financial officer of the bank, Diwakar Gupta, told Press.
This is to avoid the borrowers switching their loans to other banks. SBI is convincing the customers with this new method to reduce their interest burden.