Similarly, for loans above Rs 75 lakh, the premium charged by SBI over and above the spread of 265 bps is 50 bps over EBR and the effective rate comes to 8.55 per cent.
SBI also said that a 5 bps concession will be given to women borrowers under each category of loans.
Over and above the effective rate, a 15 bps premium will be charged by the bank for non-salaried customers. The bank will also add a 10 bps premium to the card rate for loans up to Rs 30 lakh if the loan to value ratio of the customer is greater than 80 per cent and less than 90 per cent.
The lender also said that if the customer falls in the risk grade of 4 to 6, a premium of 10 bps will be added to the card rate.
SBI, this week, said it will use the repo rate as the external benchmark to price all new floating rate loans for micro, small and medium enterprises (MSMEs), housing and retail loans and medium-size enterprises from October 1, 2019.
SBI had earlier introduced a repo-linked home loan
effective July 1, 2019, which was withdrawn. A few modifications have been made in the scheme which will take effect October 1, 2019, to comply with the latest regulatory guidelines.
The country’s largest lender said it will voluntarily extend benchmark-based lending to medium enterprises also to boost lending to the MSME sector as a whole.
The RBI has made it mandatory for all banks
including small finance banks
to link their new floating rate loans to buy homes, vehicles and for personal consumption along with loans micro, small and medium enterprises (MSME), to an external benchmark.