SBI extends cheap loan scheme till 30 September

The State Bank of India has extended its special offer for auto and home loans for another five months till 30 September

SBI, the country's largest lender, had introduced the special schemes of providing home and car loans at 8 per cent and 10 per cent interest rates, respectively in February this year.

Under the scheme, which was earlier valid till the end of April, the bank had frozen interest rate on new home loans at 8 per cent during the first year, while the cost of auto loans was fixed at 10 per cent during the first year.

As per the earlier decision, the offer was till April 30 and SBI was to review rates subsequently, depending on the prevailing rate.

The bank decided to extend the scheme till 30 September following good response from customers.

"There has been an excellent response to the schemes and customers have taken to it in a big way. Hence, our decision is to extend the schemes up to 30 September," SBI chief general manager, personal banking, P Nandakumaran, said.

The schemes will be applicable to only new home and car loan borrowers.

"New home loans sanctioned and disbursed up to September will be available at the concessional rate of interest of 8 per cent per annum for the first year and at the contracted applicable rate of interest thereafter," Nandakumaran said.