SBI Cuts Processing Fees on Home, Auto Loans

New Delhi: State Bank of India (SBI) on October 17 reduced the processing fee on home and auto loans by 50 percent to cash in on festive season demand.

This offer is applicable on loans availed from October 17 to December 31, SBI said in a statement.

"With this reduction, the bank is quoting the lowest processing fee on both home and auto loans to our esteemed customers," it said.

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 percent.

Last month, SBI reduced its base rate or minimum lending rate by 0.25 percent to 9.75 percent 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 percent.

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