Mumbai, Mar 25: In what may come as a major relief to home loans customers, there are reports that leading lender, State Bank of India (SBI) may not 'kill' the popular 8 per cent home loan scheme.
“Well, I suppose there can be modifications (in the products), which will be in tune with our liquidity position...normally, we don"t kill any product," a top SBI official is quoted as saying a news agency.
“I think it is the best home-loan product in the market. It is a very successful product. The way it helped other sectors to grow like steel and cement and contributed to the overall economic growth is tremendous," the official added.
India's largest lender, however, is yet the formally decide on the extension of the scheme and the nature of the changes, if any.
Under the My Home Campaign, the bank gave home loans at cheap rates ranging around 8 to 8. 5 per cent to its new customers.
The bank introduced the scheme, known as 'teasers', in Aug 2009 for a limited period of three months but later extended it till Mar 31, 2010. SBI was also the first one to roll out such a scheme.
The central bank, Reserve Bank of India (RBI) is not happy with these teaser schemes, which come to benefit only the new customers while the old customers suffer the burden of old interest rates.