The State Bank of India (SBI), India’s largest bank, has unveiled an ambitious strategy to expand its home loan and top-up loan portfolio by targeting customers with lower credit scores and those who are new to credit. Under its latest ‘campaign rates’ initiative, the bank is enticing these customers with significant interest rate concessions compared to prevailing card rates.
For customers with lower credit scores ranging from 151 to 200, as well as those who are new to credit or have no credit score, SBI is offering a concession of 65 basis points (bps) and 45 bps, respectively, over the card rate for both home loans and top-up loans.
Additionally, SBI is promoting the growth of its home loan portfolio by providing a 55 basis points concession on the card rate for customers with a credit score of 750 and above. This effectively brings down the interest rate to 8.60 percent. This initiative, which began on September 1, is slated to last for four months.
For customers falling within the credit score range of 700-749, 151-200, and those who are new to credit or lack a credit score, SBI is offering an even higher concession of 65 basis points over the card rate, resulting in an effective home loan interest rate of 8.70 percent.
In addition to these concessions over the card rate, SBI is providing an extra 20 bps discount on the proposed rates for home loans associated with takeovers, resale properties, and ready-to-move properties for customers with a credit score of 700 and above.
This means that customers with a credit score of 750 and above will have access to home loans at an attractive interest rate of 8.40 percent, while those with credit scores ranging from 700 to 749 can secure home loans at 8.50 percent.
Top-up loans
In top-up loans, the bank is extending a 45 bps concession over the card rate for customers with credit scores of 750 and above, resulting in an effective interest rate of 9.10 percent. Similarly, customers with credit scores in the range of 700-749, 151-200, and those who are new to credit will also receive a 45 bps concession, leading to an effective interest rate of 9.30 percent.
Furthermore, SBI is offering a 20 bps concession on the proposed rates for top-up loans linked to takeover loans for customers with a credit score of 700 and above.
