State Bank of India has disbursed a record Rs 1.12 lakh crore of loans to individual home buyers until January end in FY22 as demand for housing in the hinterland surged, helping it leapfrog specialist lenders in the mortgage business.
This is a 20% growth over the corresponding period in FY21.
Home loan disbursements have now surpassed pre-Covid levels, two industry sources told ET, underscoring the appetite for new homes among end users.
A spokesperson at SBI confirmed the development, saying the growth was geographically broad-based.
“Our bank has disbursed Rs. 1.12 lakh crore in home loan and home related loans as on Jan 22 during the current financial year,” the spokesperson said, responding to ET’s query.
About 40% of such disbursements came from tier-1 cities while the rest has come from other cities and towns. The average ticket size of such loans is said to be at Rs 34 lakh.
Mumbai, Hyderabad, Kolkata, Chennai, Ahmedabad, Bangalore and Pune have a fair share of the disbursements.
“The majority of this year’s record disbursements took place between July and now as the infection virulence has been gradually reducing,” said one of the persons cited above.
The bank has waived processing fees until March 31 this year as the lender is aiming to acquire more customers with an attractive rate of 6.7%. This minimum rate may rise up to 20 basis points depending on an individual’s credit score as provided by CIBIL.
A customer can save anything between Rs 3,500 and Rs 10,000 on loan applications depending on the ticket size. It is pegged at 0.35% of the loan value.