Interest Rates, EMI Calculator 2020

Interest Rates, EMI Calculator 2020

  • SBI launches portal for the restructure of retail loans

    The State Bank of India (SBI) had announced the launch of its online portal for easier and hassle-free restructuring of retail loans such (auto loans and home loans) or its customers. Customers can access these websites or and can check eligibility for loan recasts by typing in the details of their income.

    Borrowers can now ask for a moratorium of 1-24 months and also an extension of the term of their loan. SBI has launched this after the Reserve Bank of India (RBI) had said that banks can offer a restructuring of loan option to the borrowers.

  • New offer for SBI home loan customers to reduce their EMI amounts

    The State Bank of India (SBI) has recently announced a new option which will be offered to its existing home loan customers.

    On the basis of the new offer, the PSU bank is offering customers to switch from their MCLR based loans to EBR base loans. This brings a relief to many borrowers as the EBR or External Benchmark Rate based loans will ideally affect the EMI amounts and make them lower.

  • State Bank of India offers special offers on home loans

    State Bank of India (SBI) has offered special offers on home loans. These are for new applicants for home loans. Those having high CIBIL scores will get a concession on interest of 0.10% for loans ranging from Rs.30 lakh to Rs.1 crore. If they applied for these loans through the SBI Yono mobile application, there will be an additional discount of 0.50%. New home loans are linked to the external benchmark rate, which is now 6.65%. SBI’s external benchmark rate is linked to the RBI repo rate which is currently 4%, which was reduced in view of the Covid-19 pandemic. For salaried employees, the home loan interest rate ranges from 6.95% p.a. to 7.45% p.a. and for self-employed individuals it ranges from 7.10% p.a. to 7.60% p.a. There is also zero processing fees, which will help borrowers save up to 0.40% of the loan amount. Those who have home loans from other lenders, which have remaining tenure of 15 years with interest rates above 7.50% p.a., will benefit if they transfer their loans to SBI at this stage and save up to Rs.1.52 lakh on the outstanding principal of a loan of Rs.30 lakh.

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  • Online application window to be launched by SBI for retail recasts

    A new portal is being worked on by SBI so that existing customers can restructure their loans that have been affected due to the coronavirus outbreak. The launch date is expected to be 15 September 2020. The new portal will allow borrowers to check their eligibility for recast within three days. However, relevant documents and income details will have to be provided by the borrowers showing that the coronavirus outbreak has affected their ability to pay. Post the relevant checks, SBI may request for more details. Under the resolution plans, granting of the moratorium, conversion of any interest rates, and rescheduling of payments may be included.

  • SBI Home Loan Customers to Enjoy Lower Interest Rates Frequently

    According to reports, SBI has reduced its MCLR reset frequency. Earlier, the bank used to reset its MCLR annually. However, SBI recently tweeted saying that the bank has slashed its MCLR reset frequency from 1 year to 6 months. 

    This move will help SBI home loan customers reap benefits of lower home loan interest rates. However, it should be noted that customers whose home loans are linked to the bank’s MCLR are eligible to enjoy the benefits. 

    The announcement was made to initiate faster transmission of rate cuts to the borrowers whose loans are linked to MCLR. 

  • SBI working on providing restructuring relief to its borrowers

    A plan is being finalised by the State Bank of India (SBI) to offer restructuring relief to its borrowers, after the Reserve Bank of India (RBI) permitted banks to do so. The restructuring plan will be designed only for retail or individual borrowers who have been directly affected by Covid-19.

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    Given the large number of customers who avail services from the SBI, the bank will not be able customise the restructuring relief as it might in the case of large corporate borrowers. Instead a bunch of rules will be laid down and branch level staff will be allowed to take decisions on accounts that can be restructured. The rules are most likely to be placed before the lender’s board for approval next week.

    As on June 30, SBI outstanding retail advances was reported to be Rs 7.5 lakh crore out of which, Rs.4.5 lakh crore came from the bank’s housing finance book, while unsecured personal loans for salaried individuals was recorded at Rs.1.45 lakh crore.

  • SBI Q1 profit rises 81% YoY to Rs.4,189 crore, moratorium reduces to 9.5%

    State Bank of India (SBI) has reported a standalone net profit of more than Rs.4,100 crore for the first quarter of FY21. This was 81.18 per cent higher than the Rs 2,312.2 crore net profit reported in the June quarter of FY20.

    The net profit witnessed a growth of 17% on quarterly basis. For the March quarter, the reported profit was Rs.3,580.8 crore. On a consolidated basis, the net profit came in at Rs 4,776.5 crore, up 61.88 per cent YoY, from Rs 2,950.5 crore reported in Q1FY20. The bank issued a statement in which it said that the exceptional items for the quarter ending 30 June 2020 reflects a profit of Rs.1,539.73 crore on the sale of certain parts of investment in the bank’s life insurance subsidiary – SBI Life Insurance Company Limited.

  • State Bank of India cuts MCLR rates for short-term loans

    India’s largest public sector bank, the State Bank of India has announced a rate cut of the Marginal Cost-based Lending Rate by 5-10 bps for the loans of shorter terms. According to a press release by the bank, the new rates will be in effect from 10 July and the rate cuts for short-tenure loans is to boost demand and also its credit offtake. 

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    This will be the 14th consecutive reduction of MCLR of the bank, as mentioned in the press release and with this revision, the MCLR of tenures of up to 3 months will come down to 6.65%. This rate will on par with the External Benchmark-based Lending Rate (EBLR). 

    The MCLR rate for 1, 2 and 3 years will now be 7.0%, 7.2%, and 7.3% respectively per annum. The breakdown of the revised MCLR rates are given below: 

    Overnight: 6.65% 

    One month: 6.65% 

    Three months: 6.65% 

    Six months: 6.95% 

    One year: 7.00% 

    Two years: 7.2% 

    Three years: 7.3%.  

    The bank had cut down its key lending rates in June which included a 25 bps cut on the MCLR and a 40 bps cut on the External Benchmark Rate.  

  • SBI cuts lending rates

    State Bank of India (SBI), the country’s largest lender has cut its lending rates. Following the reduction in the rates, SBI home loan rates starts at 6.95% p.a. The interest rate range for salaried individuals when it comes to home loans ranges between 6.95% p.a. and 7.70% p.a.

    In the second week of June, the bank had announced a reduction in its external benchmark linked lending rate to 6.65%. The marginal cost of funds-based lending rate (MCLR) was reduced to 7%. The new rates are effective July 1.

  • SBI slashes MCLR by 35 bps from 10 April across all tenors

    State Bank of India cut its Marginal Cost of funds based Lending Rate across all the tenors effective 8 April 2020. In FY2019-20, this is the 11th consecutive cut in MCLR by India’s largest bank. This will benefit loans linked to the MCLR, which have a floating rate of interest, such as home loans. The one-year MCLR now stands at 7.40% p.a. So Equated Monthly Instalments (EMI) on home loan accounts that are linked to the MCLR, which have a tenure of 30 years, will get cheaper by approximately Rs.24 per lakh. The previous one-year MCLR was 7.75% p.a.

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