Convert savings on lower EMI into deposits, urges SBI
The State Bank of India (SBI) is planning to showcase ‘lower equated monthly installment savings investment proposition’ to their existing customers as well as prospective customers including home loan customers of other banks and housing finance companies.
The bank has lowered the equated monthly installments (EMIs) on home loans by about Rs. 15-19 across the board.
With the revised EMI schedule, a customer with Rs 20-lakh home loan of 20 years residual maturity will pay Rs 966 a lakh as EMI (against Rs 982 earlier). As a result, the customer saves up to Rs 320 in the overall monthly payout.
Also the bank wants this amount flows into recurring deposits (RD) in order to receive a steady stream of long-term funds even as the depositor gets decent returns. However, the bank charges 10 per cent and 10.15 per cent interest on home loans up to Rs 30 lakh and above Rs 30 lakh respectively.
Equated Monthly Installment, Home loan customers, Home Loan Interest rate, Home loans, Housing finance companies, Interest rate, Loans, recurring deposits, SBI, State Bank of India
