Amid concerns expressed by the Reserve Bank, country's largest lender State Bank of India (SBI) today announced withdrawal of special home loan schemes, or teaser rates, with effect from May 1.
SBI Easy Home Loan and SBI Advantage Home Loan (teaser rate products) will be replaced by floating interest rate schemes on par with other commercial banks.
Under the teaser home loan scheme, SBI was offering lower rate of interest of 8-8.5% for the first three years. It invited severe criticism from RBI, which had said the scheme could impact the asset quality of SBI's home loan portfolio.
The withdrawl of teaser rates comes within a month of the new chairman Pratip Chaudhuri taking charge at SBI.
The home loan from SBI will now attract an interest rate of 9.5% to 10.25% depending upon the loan amount, SBI said.
SBI has also launched the SBI Advantage Car loan Scheme, under which credit would be provided at 10.75% for a maximum period of 7 years.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app