SBI Home Loan Processing Fee: SBI to Charge Home Loan Processing Fee | Business News in India

BENGALURU: SBI will start charging processing fees for borrowers of home loans, recharge plans, and business and builder loans. The move comes just after the bank faced a sharp drop in interest income after the RBI rate cut.
SBI, in an internal circular, said that the “total waiver of consolidated processing fees” offered during the festival period for loan proposals coming through December 31, 2019 is withdrawn. “The waiver will continue for proposals coming through October 15, 2019,” SBI said.
“On July 1, 2019, SBI tied its lending rate to the benchmark repo rate. Prior to that, SBI was offering the lowest rate in the market. After the decision to tie, rates fell sharply,” a source said.
On July 1, SBI launched software for automatic docking of mortgage loans at dynamic dynamic rates. It was canceled on August 1, 2019. Following internal discussions on levying other fees to compensate for the low lending rate, SBI rolled out its lending software again on October 1 (essentially pegging loans at the rate of reference).
Others, such as prepayment charges, the Central Securitization Asset Reconstruction Register and collateral registration fees may be increased later. “The processing fee would be around 0.4%. And would be between 10,000 and 30,000 (minimum-maximum) for individual borrowers. For builders, a fixed fee of Rs 5,000 has been reintroduced,” said indicated sources.

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