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Update Date : 03-Jan-2023

Created Date : 03-Jan-2023

Category : Home Loan E-Book (Promotional_BT)

Here's why SBI is a market leader for home loans

As a home loan borrower, you must have faced these questions at some point during your home buying journey and while exploring home loan options.

Why is SBI so hyped?

Interest rates of so many other lenders are looking far more attractive than what SBI is offering.

Still, why it that people in large numbers are still queuing up to avail loans from SBI?

Here are the reasons:

a. Trust and the transparency that they maintain in their dealings is what makes them stand apart.

They disclose the exact amount of interest that they are charging you every month in their monthly statement.

b. They make enough data available for you to analyze that you’re being fairly charged interest each month.

Interest on a daily reducing balance and non-cumulative basis is a recipe for quick loan repayment.

c. CRP is what banks primarily make money on. They disclose the exact % of CRP that they are charging their borrowers. This further ensures transparency when the market rates change and help borrowers find out if they have made any revision to CRP without any change in their credit risk.

So, they keep almost all their cards open while dealing with you.

So far, they are also known to have passed on all rate cuts to their existing borrowers fully and upfrontly.

For this, they did not have to chase them or pay a fee every time the RBI announced a reduction in repo rates.

This behaviour develops a sense of trust and comfort amongst borrowers that their financial interests are being looked after.

All that being said, borrowers of SBI are also found to have finished their loans much sooner than the rest.

So, all this explains that quality in such cases far outweighs quantity.

Besides, there are many more benefits that SBI offers over many more lenders. Here are some of them:

1. The standard benchmark for all – It ensures parity in rates between new and existing borrowers.

2. Lowest cost of lending – SBI is known to be one of the most trusted brands in the field of banking & finance.

This enables them to raise funds & deposits at a cost much lower than their fellow competitors.

Lower cost of funds eventually stabilizes their lending rates in long run and helps them stay profitable without manipulating rates.

3. Higher tenure – SBI extends home loans up to 30 years and upto the age of 70. This keeps your EMI affordable in long run.

4. Fixed Margin – Fair pricing policy ensures that their CRP is disclosed and remains more stable in long run as compared to other private lenders.

5. Online Prepayment facility – You can make part pre-payments online. No need to visit branches.

6. After sales service – Most of their services are now digitized. This has helped them uplift their service standards tremendously in the last few years.

7. Fair pricing – No hidden terms. They also disclose the exact amount of interest that they charge their borrowers every month in their monthly statements.

8. Strong due diligence process – They help you buy the best property that is legally and technically sound.

All thanks to the highest standard of due diligence process that they have created and maintained for sanctioning loans.

9. Transparency – Every detail of your home loan terms and conditions and very clearly defined. This is what makes it one of the most trusted brands in the banking industry.

10. Best OD product – They have one of the best OD products as it involves minimum restrictions and no hidden terms unlike many other banks that offer similar products but with numerous hidden conditions.