SBI introduced new home loan products for Central/ State Govt/ PSU employees on the backdrop of 7th CPC Implementation

Date : 1.8.2016

SBI introduced new home loan products for Central/ State Govt/ PSU employees on the backdrop of 7th CPC Implementation

SBI introduced new home loan products for Central/ State Govt/ PSU employees on the backdrop of 7th CPC Implementation

With the government deciding to implement the recommendations of the 7th Pay Commission on wage hike with effect from August 1, State Bank of India has introduced home loan products for central/ state government/ public sector undertaking employees and defence personnel, whereby they will get the benefit of repaying the loan over a longer period and softer interest rates.

India’s largest bank, in a statement, said government employees will have the flexibility of repaying home loan up to the age of 75 years. Under existing Home Loan schemes, repayment is normally available up to the age of 70 years only.

The bank has introduced ‘Privilege Home Loan’ for government employees and ‘Shaurya Home Loan’ for Defence Personnel with pensionable service.

Home loan borrowers under the two schemes will enjoy an interest rate concession of 5 basis points over the Home Loan Card Interest Rate. One basis point is equal to one-hundredth of a percentage point.

This concession is available wherever check-off facility (to debit the borrowers salary account) is extended by the Government under tie-up arrangement with the bank.

SBI said it will fully waive the processing fee. It also added that customers of other Banks / Financial Institutions can switchover their Home Loan outstanding balance to State Bank of India under these schemes.

The bank said the burden of servicing EMIs (equated monthly installments) under the new schemes will be lightened as lower EMIs would need to be serviced during the post-retirement term.

“The launch of ‘SBI Privilege Home Loan’ and ‘SBI Shaurya Home Loan’ products is timed with the notification of 7th Pay Commission recommendations by the Government.

“Surplus income can thus be utilized by Government Employees and Defence Personnel towards purchase of new / better houseSurplus income can thus be utilized by Government Employees and Defence Personnel towards purchase of new / better house,” the bank said