SBI extends 8% home loan scheme to March 2010

India's largest lender State Bank of India (SBI) has extended its special home loan scheme at 8 per cent interest rate by over four months to March 31, 2010, a move which would provide relief to small home loan borrowers.

The bank, which offers the special scheme under 'My Home Campaign', offers 8 per cent fixed interest rate for 5 years for loans up to Rs 5 lakh, with a maximum tenure of 10 years.

The scheme was originally slated to end tomorrow.

For loans above Rs 5 lakh and up to Rs 50 lakh, interest rate has been fixed at 8 per cent during the first year and 8.5 per cent during second and third years, SBI said in a statement here.

The bank is also offering SBI MaxGain, under which it offers home loan as overdraft with possibility of saving interest.

Targeting customers buying high-end properties, the bank is offering SBI Advantage Home Loan, which would carry a fixed interest rate of 8 per cent during the first year and 9 per cent during second and third years, SBI said.

These schemes help clients to know about their loan repayment obligations at low interest rates for 3 to 5 years, the bank said.

After the offer period, customers will have the option to opt for a fixed rate with a reset frequency of 5 years or floating interest rate linked to SBI's advance rate for the remaining loan term, SBI said.

SBI had launched these products in August this year for a limited period of three months.