20 Dec 2012, ET Bureau.
MUMBAI: Now, get discount on online purchase of home loan and auto loan. State Bank of Bikaner and Jaipur(SBBJ) is offering a 10 basis points discount on home loan and 25 basis points discount on online purchase of loan. The country’s largest bank State Bank of India is likely to follow its subsidiary.
SBBJ has seen increase in applications with the online offer. For auto loans above 10 lakh, the bank is offering 25 basis points discount. The bank is offering 10 basis points discount on home loans of any amount.
“We have seen good response after we rolled out this scheme,” said SBBJ managing director Shiv Kumar. “Large public sector banks are studying our model and would follow us soon.”
The bank has waived off processing fee and pre-payment penalty. It is sanctioning 200 auto loans and 70 home loans through online every month. Home loans have grown by 12.1% year-on-year in November, compared with 16.5% in the same month a year ago.
State-run banks are hit by high non-performing loans in the corporate sector. The focus has shifted to retail portfolio. To push retail loans, public sector banks are offering auto loan free with home loan.