Oriental Bank links loan to repo rate; SBI announces festive offers

State Bank of India (SBI) on Tuesday announced a number of offers including cheaper rates for home and auto loan borrowers, to cash in on festival fervour. Customers can avail the cheaper loans with added benefits such as waiver in processing fees, pre-approved digital loans and loans with no escalation in interest rates spread across various categories, SBI said.
 
The bank has not specified the time period for which this festival offer would be valid. "SBI has waived processing fees on car loans during festival season. The bank is offering lowest interest rate starting from 8.70 per cent to customers opting for car loan, with no escalation in interest," it said. 
 
For customers applying for a car loan online through the bank's digital platform like YONO or website, a 25-basis point concession on interest rate can be availed, it said. The salaried customers can also avail the loan up to 90 per cent of the car's on-road price, it said.
 
The bank offers cheapest home loan at 8.05 per cent as repo rate-linked home loan and this rate will be applicable to all existing and new loan from September 1, it said. With regard to personal loan, it claimed Rs 20 lakh will be available at the lowest interest rate starting from 10.75 per cent with the longest repayment tenure of 6 years, reducing EMI burden.
 
State-owned Oriental Bank of Commerce (OBC) on Tuesday said customers can now avail home and vehicle loans at repo-linked interest rates starting from 8.35 per cent and 8.70 per cent, respectively. OBC has launched new variant of home loan and vehicle loan products linked to the Reserve Bank of India's repo rate, the bank said.
"Customers will have the option to select between MCLR linked rate, which is indexed to the bank's cost of funds or a repo rate linked to the external benchmark. "With the new variant, home loans and vehicle loans will also be available at repo rate linked interest rate starting at 8.35 per cent and 8.70 per cent, respectively, thus passing on further benefit of 20 basis points and 25 basis points respectively to the current MCLR rated pricing," OBC said.