SBI waives processing fees for home loan transfers

MUMBAI: The country's largest lender State Bank of India (SBI), which recently cut its lending rates by 15 basis points, has waived processing fees as an incentive to those wanting to shift their existing home loans to the bank. SBI is also offering borrowers a top-up option, where the borrower can raise more than his outstanding loan account.

Speaking to TOI, B Sriram, MD, SBI, said, "In consequence of the reduction in our home loan rate, which we believe is now the cheapest in the industry, we thought of extending this facility for those who would like to bank with us by waiving processing fees until September 30."

While from the bank's side there would not be any charge, borrowers would be subjected to stamp duty charges for creating mortgage. Also, if the project is not approved by SBI, the borrower would have to pay fees to an empanelled lawyer for a title search. Interest on the top-up portion will be around half a percentage point more than the loan rate. "At present, roughly 10% of our disbursements are from takeover of existing loans. I would expect the number to go up to above 20%," said Sriram.

State Bank of India