Why Is SBI The Best Bank ?
The public sector State Bank of India is India’s largest commercial bank with a network of 9,000 branches offering range of banking services such as
· Personal Banking
· Gold Banking
· NRI Banking
· International Banking
· Corporate Banking
· Small Scale Industries
· Small Business Finance
· Rural Banking
· Government Business
· Home Loans
SBI Bank India has 52 Foreign Offices in 34 countries.In the mid-’90s when SBI was facing stiff competition from whole lot of private sector banks, the assistance of McKinsey & Co was sought to help in its restructuring. Today SBI has again approached Mckinsey for another round of restructuring as aggressive foreign banks who have the advantage of superior technology like ICICI Bank and HDFC Bank are eating into SBI’s market share of interest and fee-based income.
In 1999, its market share among the public, private and foreign banks excluding cooperative and regional rural banks in terms of deposits was 23.30 per cent, advances 23.67 per cent and total assets 24.91 per cent respectively but in March 2004, its share of deposits fell to 20.98 per cent, advances to 18.91 per cent and total assets to 21.38 per cent.
With its 9,000 branches along with its seven associate banks, the branch network adds up to an amazing 13,649 is roughly 20 per cent of all the bank branches in the country
SBI Home Loans
The distinctive features of SBI’s home loan schemes are that there is no cap on the maximum loan amount for the purchase or construction of a house or flat and there is an option to club the income of one’s partner and children in order to calculate the eligible loan amount which can be repaid upto 70 years of age. These home loan schemes also include free personal accident insurance cover and they charge no administration or application fee.Besides the usual purposes for the purchase or construction of a new house or flat, or a plot of land for the construction of a house, SBI also provides finances if one plans to extend, repair, renovate or alter an existing house or flat or one wishes to buy furniture or other furnishing for one’s home.
To be eligible for a home loan with SBI, one should be a minimum 21 years of age and a processing fee is charges which is 0.5% of the loan amount including service tax.They have two types of interest rate amount which is floating interest rate of 10.75% which is linked to State Bank Advance Rate or SBAR and fixed rate interest of 9.5% upto first five years and 9.75% above five years and upto ten years.SBI provide finance under four types of home loan schemes which are SBI flexi home loans, SBI Maxgain home loans, SBI realty home loans and SBI freedom home loans.
Personal Loans
They have the advantage of low interest rates which are charged on a daily reducing balance, low processing charges of only 1% to 2% of loan amount, no hidden costs or administrative charges, no security which means minimal documentation, no prepayment penalties and a long repayment period upto 48 monthsThese loans have a repayment period upto five years and carry a low rate of interest.
Gram Niwas Scheme
This a scheme which is a part of SBI’s social obligation as a public sector bank and aims to cater to needs of those who reside in villages. They attempt to focus on the very poor for housing loans keeping in mind the peculiarity of ownership title in the rural areas, their social mores and the speicl type of construction used in these areas.
Easy Travel loans
They have the advantage of a low interest rate charged on a daily reducing balance, low processing charges of only 1% of the loan amount, no hidden costs, no security which automatically means minimal documentation, no prepayment penalties and a repayment period upto 48 months.
These schemes are aimed to meet travel expenses such as cost of tickets, hotel stays, visas, airport taxes etc. There are criteria for eligibility of course.
Car Loans
These can be used to buy a new car, jeep, MUV’s or SUV’s of any make or model or a used car / jeep/ MUV/SUV which should not be more than five years old and can be of any make or model.
One has the advantage of low interest rates, longer repayment period upto 84 months, low processing charges, no hidden costs, finance for one time road tax, registration fee and insurance premium and no advance EMI’s.
Education loans
These are granted to Indian nationals who wish to pursue higher education whether in India or abroad wherever one has got admission.The expenses considered for the loan are fees payable to the college, school or the hostel, examination or library or laboratory fees, purchase of books, equipment, instruments or uniforms, caution deposit, building funds and refundable deposits, the travel expenses incurred, computers and the cost of a two wheeler upto Rs 50,000/- and also other expenses such as study tours, project work etc. The loan disbursed is a maximum of 10 lakhs for studies in India and maximum of 20 lakhs for studies abroad. The interest rates charges are 11.00% per annum floating for loans upto 4 lakhs and 12.00% per annum floating for loans above 4 lakhs.
Besides the above, they also have an amazing variety of loans such as scholar loans, property loans, loans to pensioners, loans against shares or debentures, loan for earnest money deposit, festival loans, medi plus scheme, teachers plus scheme, tribal plus scheme, credit khazana and rent plus scheme.