State Bank of India, on Monday, issued a statement announcing 100 percent waiver of processing fees on most of its retail loans. This is a part of the ‘Festival Bonanza’ programme announced by SBI and is aimed at enhancing its retail loan portfolio.
In the statement, SBI mentioned that processing fees on car loans, personal gold loans and other types of personal loans will be completely or partially waived off. 50 percent of the processing fees will be waived off for personal gold loans till 31st October, 2017. Car loan applications received till 31st December, 2017 will be eligible for this fee waiver. 50 percent waiver is also offered on Xpress Credit which is a unique personal loan offering by the bank.
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SBI has a deposit base of 26.02 lakh crore with Current and Savings Account (CASA) ratio of 43.81 percent. With the recent reduction in interest rates on savings accounts, SBI’s cost of funds has significantly come down. As a result, the banks Marginal Cost of Lending Rate (MCLR) is also likely to reduce when it comes up for review at the end of this month.
Lowering of key policy rates by RBI has led to a reduction in savings account interest rates across several banks. This retail loan push is also a ripple effect of the same.