Why Most People Apply for State Bank of India Loans

Most indian people apply for state bank of india loans because state bank of india is offering various types of loans very quicly with less documentation in simple process.

The State Bank is lending all the types of loans within 2 to 6 days thats why most people are showing interest in applying state bank of india loans.

State Bank of India is No 1 Home Loan Lender

Recently we have conducted an online survey, In that survey most people said that state bank of india is lending home loans very quickly than the other banks in india.

The people have also said that state bank of india is a No 1 home loan lender. After the state bank of india HDFC Bank and ICICI Bank stood topper in home loan lending.

State Bank of India Hikes Short Term Corporate Loans

The biggest lender of the country, State Bank of India has hiked interest rates on short term corporate loans by 25-50 basis points. O P Bhatt, Chairman of SBI said, “With surplus liquidity gradually disappearing from the system, we have re-priced certain segments of our short-term corporate loans by 0.25-0.50 bps upwards.” But he said, it is quite unlikely to hike the deposit rates immediately. The bank anticipates liquidity to continue in the economy.

Bhatt said, “We have got requests and demands for that kind of money. At the maximum we will lend Rs 18,000 crore. Having said that, we are still having a surplus liquidity of Rs 26,000″.

Union Bank of India CMD, M V Nair has said that the bank will be spending Rs. 2000 crore for 3G auctions. He said, “Liquidity will not be impacted with the money flowing out as we already sitting on adequate liquidity”.

Talking about bad loans, Bhatt said that NPAs of the bank have fallen over the last few years. The bank had posted a fall in net profits in the Q4 of the earlier fiscal due to rise in NPAs. He said, “Usually in April there is always a negative growth. So it is too early to say if it is because of the slack season or if there is more to it,”.

State Bank of India to Hike Loan Limit by 10 Times

State Bank of India will shortly be hiking the loan limit to people purchasing land to construct a house by 10 times. This move by the banking giant is meant to raise its grasp on the home loan segment. According to the proposal signed by the bank, it would lend Rs. 10 crore to people for purchasing land. Previously the limit for the same was Rs. 1 crore, according to a top SBI official.

A top SBI official said, “A customer will also be eligible to avail another housing loan for other housing-related construction on that plot, enjoying the benefit of running both the loans concurrently”. But the bank has fixed the margin limit at around 35% for loans exceeding Rs. 1 crore. For loans not exceeding Rs. 75 lakh, the margin limit has been fixed at 20%.

The official added, “We have a liquidity of over Rs 40,000 crore; schemes such as this will help us achieve our credit growth targets”. But the bank will follow proper diligence, while raising the credit offtake in the home loan sector. The official said, “To minimise fraud risk, two title search reports from different lawyers will be obtained before sanctioning the loan”.