SBI brings back processing fee on home loans

After reducing deposit rates for its customers, State Bank of India has now decided to charge processing fees for home loans, top-up plans and loans to corporates and real estate companies.

In an internal circular, the SBI said: "The full waiver of consolidated processing fee" offered during the festival period for loan proposals sourced up to December 31, 2019, is withdrawn. The waiver will continue for proposals sourced up to October 15, 2019, 'The Times of India' reported.

The SBI had recently linked lending rates to benchmark repo rates, resulting in a sharp fall in its interest income.

The bank will now charge around 0.4 per cent processing fee in the range of Rs 10,000-Rs 30,000 for individual borrowers, the daily quoted sources as saying, adding the bank would charge Rs 5,000 from builders.