100 percent processing fee on car loans, personal gold loans and other personal loans. This is part of a 'festival bonanza' programme announced by the bank. The waiver of fees on car loans is valid for applications received till December 31, 2017. SBI has also waived 50 percent of the processing fee on personal gold loans till October 31, 2017. Till September 30, 2017, customers can avail 50 percent waiver on processing fee on Xpress Credit — a personal loan offering by the bank.
The retail push comes three weeks after the bank announced a cut in the savings bank rate. Since then, the Reserve Bank of India (RBI) also reduced its key policy rate by 25 basis points (100bps = 1 percentage point). According to officials, SBI's marginal cost of lending rate (MCLR) — the benchmark rate on which all loans are priced — could be lowered when it comes up for review this month-end.
The MCLR, like the name suggests, is based on the bank's incremental cost of funds. This has come down significantly with the downward revision of the savings deposit rate. SBI has a deposit base of more than Rs 26 lakh crore with current and savings account ratio of nearly 44 percent.
SBI's home loans have grown at 13.9 percent year-on-year during the first quarter with outstanding home loans standing at Rs 2.83 lakh crore as on June 30. Auto loans grew 29% to Rs 59,484 crore during the same period.
SBI chairman Arundhati Bhattacharya says, home loan growth was hit during the first quarter of FY18 because of the merger process of associate banks with SBI. The process led to inadequate feet on street and issues related to software linkages.