MUMBAI, AUG 1: State Bank of India(SBI) has introduced home loan products for central/state government/ public sector undertaking employees and defence personnel, in which they shall get the benefit of repaying the loan over a longer period and softer interest rates. This comes after the Indian government decided to implement the recommendations of the 7th Pay Commission on wage hike with effect from the 1st of August.
SBI said that government employees shall have the advantage of repaying home loan up to the age of 75 years which is presently fixed at 70 years. The bank has introduced ‘Shaurya Home Loan’ for Defence Personnel and ‘Privilege Home Loan’ for government employees with pensionable service.SBI share price closed lower 0.72% at Rs.227.30 on NSE.
The home loan borrowers under the 2 schemes shall enjoy an interest rate concession of five basis points over the Home Loan Card Interest Rate. This concession is available wherever check-off facility is outspread by the Government under tie-up agreement with the bank. SBI said that it would fully waive the processing fee. It also added that the customers of other Banks/Financial Institutions could switch over their Home Loan outstanding balance to SBI under these schemes.
The bank said the burden of servicing EMIs under the novel schemes would be lightened as lower EMIs would have to be serviced during the post-retirement period.
The bank said that the launch of ‘Privilege Home Loan’ and ‘Shaurya Home Loan’ products was timed with the notification of 7th Pay Commission recommendations by the Indian Government.
The State Bank of India also said that surplus income could thus be utilized by Defence Personnel and Government Employees towards purchase of novel / better houses. For more details on the stock and its financials kindly visit SBI share price history.
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