Concessional home loan scheme of SBI extended till 31st December

The largest lender in the country State Bank of India has announced to extend the concessional scheme where the lender was offering a concession of 25 basis points over the card rates till 31^st December this year, earlier the scheme was available till October 31^st.

In a statement the bank said "A concession of 0.25 per cent in the card interest rate over the tenor of the home loan is available under the ongoing special home loan campaign up to December 31."

A few lenders have recently launches the dual rate home loan scheme which has affected the home loan business of the bank and in order to lure customer the bank has extended the tenure of the scheme.

SBI not in mood to get into any trouble because of teaser loans

As ICICI Bank and HDFC Ltd, both leading lenders in the country have launched teaser home loan schemes where the interest rate remains fixed for initial few years and then turns to floating. The trend was started by the largest lender in the country State Bank of India which has to withdraw this scheme under immense pressure from the Reserve Bank of India has ruled out any possibility of re-launching the teaser loan scheme.

The Chairman of State Bank of India, Mr. Pratip Chaudhuri said "We have no plans as of now to launch any special home loans.

“We had tried to argue (with the RBI), to reason, but the regulator has a position and already we have provided 2 per cent on our teaser loan portfolio that is Rs. 500 crore. I think it was a stiff enough penalty and we would not like to live through it again,” he said.