India’s largest bank, State Bank of India, has made selling home loans its primary objective to remain the top mortgage company. This is a terrific boost to its marketing strategies as SBI has decided to offer a concession of up to 35 basis points on loans for construction to builders for the affordable housing segment. One basis point is 0.01 percentage point.
“We are tying up with builders and offering them construction finance on easier terms for affordable housing projects. This, in turn, helps marketing of home loans,” said Partha Pratim Sengupta, SBI chief general manager for Kolkata circle.
Last week, the bank announced that it has lowered home loan rates and accordingly women borrowers will get home loan at 8.35 percent for up to INR 30 lacs. Other salaried borrowers will get loans at 8.40 percent a year. In order to match up with SBI’s home loan rate cut, HDFC and ICICI Bank have also followed suit, taking advantage of Central Government’s push towards affordable housing. The Indian Government has the plan to provide housing for all by the year 2022, our nation’s 75th year of Independence.