The discontinuation of SBI’s (State Bank of India) Teaser loans (namely Easy Home Loan and Advantage Home Loan scheme) has impacted growth in the bank’s home loans segment. In April growth in the bank’s loan book was about Rs 1,000 crore, down 28% from the Rs 1,400 crore average growth per month seen in last fiscal year 2010-11. Under the teaser scheme, SBI used to charge slightly lower interest rate for the first few years of the loan.In 2011 May, the number has dropped further.of May 31, 2011 the home loan portfolio of SBI stood at about Rs 88,000 crore.
SBI's retail home loan portfolio at the end of March 31, 2011, stood at Rs 86,769 crore. It was up 22% from fiscal 2009-10.
In the month of April 2011. SBI’s home loans grew 17.3% (2011 March was 15%) year on year despite high real-estate prices and lending interst rates.
Industry people said,'' The drop may have begun in 2011 April because Mr.O.P. Bhatt, the former chairman of the SBI, who had vigorously pushed the teaser loans, retired on March 31, 2011 and the Chairman Mr. Pratip Chaudhuri, who took over from April 1, had a different perspective on it.
RBI (Reserve Bank of India) had repeatedly frowned at teaser loans during Mr. O.P.Bhatt’s period. Now, SBI’s home loan portfolio growth will be slower going forward. HDFC and ICICI Bank had discontinued teaser loans in November 2010.
Their salary JUST covers what they can spend now, and if you add a house, expect expenses on that to go up to put you into the red.
ReplyDeleteWell this article is too informative about home loans and put spotlight of several sub topics of the main headline of article
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