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State Bank of India (SBI), the country’s largest lender, has announced to waive the processing fee by upto 100% on car, personal and gold loans for the festive season. Previously, the bank had waived off the processing fee on the home loan balance transfer.
The public lender has removed the entire processing fee, which was earlier applicable to car loans, till December 31, 2017. Meanwhile, it has cut down the processing fee of personal and gold loans by 50% each. While the processing fee waiver on a personal loan (Xpress Credit) will apply till September 30, 2017, the same for a gold loan will continue till October 31, 2017.
Will SBI’s Move Trigger the Processing Fee Waiver War Among Other Lenders?
The move of SBI to reduce the processing fee doesn’t come as a surprise as top lenders invariably do so to boost their credit growth during the festive season. People usually flock to the car showrooms during the festive season to avail the discounts. Their happiness only doubles when the banks waive or lower the processing fee on a car loan.
People also look to buy new furniture and other decors during the festivals, making it imperative for the lenders to launch exciting personal loan offers. Also, if someone has a gold, he/she can mortgage the same to avail a loan to fulfill his/her needs during the long festive season.
Some lenders also come with a relaxation on the interest rate during the season. Since the loan market is intensely competitive, a relaxation from a top lender like SBI can trigger a similar offering from others in the group. So, don’t be surprised if you get to hear several appealing offers this festive season.
A Look at SBI’ Retail Advances
SBI’s retail advances have recorded a year-on-year growth of 13.31%. Its retail loan book stands at ₹4,90,005 crore in June 2017, compared to ₹4,32,455 crore in the same month a year ago.