Chandigarh: Public sector lender State Bank of India that offers lowest lending rates for buying homes plans to aggressively tap refinance market in the current financial year. The fast growing market of home loans transferred from other banks consist 25% of the total home loans disbursed by the bank in the last financial year.
"Home loans worth Rs 700 crore out of the total Rs 3000 crore disbursed each month by the bank are those taken over from the other banks," chairman, SBI, Pratip Chaudhuri said at Chandigarh. The bank disbursed home loans of around Rs 30,000 crore in 2012-13, he said. The home loan segment is strong for SBI that offers lowest lending rates of 9.95 per cent for loans below Rs 30 lakh.
Under home loan refinance, customers transfer their home loans to SBI to benefit from lower interest rates and extended repayment schedule.
"The bank has refinanced home loans taken from host of other banks and the market is growing fast," Mr Chaudhuri said. "The home loan segment still has lowest Non-Performing Assets that is less than 1 per cent," the chairman said.
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