India’s biggest pubic sector bank has waived off the processing fees for the personal loans.
In a statement issued on Monday, the bank said that it will waive up to 100 per cent processing fee on car loans, personal gold loans and other personal loans due to the upcoming festive season and in order to encourage the borrowers. 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 per cent of the processing fee on personal gold loans till October 31, 2017. Till September 30, 2017, customers can avail 50 per cent waiver on processing fee on Xpress Credit – a personal loan offering by the bank.
It is to be noted that the bank had already announced a waiver of fees on takeover of home loans from other lenders.
SBI’s MCLR – Marginal Cost of Lending Rate could be lowered when its financials are reviewed later this month. The cost of funds has come down significantly with the downward revision of the savings deposit rate. SBI has a deposit base of 26.02 lakh crore with CASA ratio of 43.81 per cent. The announcement has been welcomed by the public since it would help them meet the festive expenses without having to pay too much for the processing fees. SBI started charging for almost all the activities earlier including banking services like deposits and withdrawals and was criticised by the public for turning into a profit monger.