It is now possible for you to get the auto loan as well as home loan through online services. In general, State Bank of Bikaner and Jaipur (SBBJ) provides home loan on a discount of 10 basis points and you can get this loan through online for a discount 25 basis points. State Bank of India being the largest bank in the country is expected to follow its supplementary.

SBBJ has observed that many customers are increasingly applying this loan through online services. This bank provides discount of 25 basis points for the people acquiring auto loans over 10 lakhs. In addition, the bank provides 10 basis points as reduction for any amount on home loans.

Shiv Kumar, Managing Director of SBBJ, stated that they have noticed good response from the people after introducing this new plan. He added that the bank’s model is being studied by large public sector banks, which may follow this model shortly.

The bank has slashed the pre-payment penalty and processing charges. Each month, it approves 70 home loans and 200 auto loans through online application. The home loans have specifically increased by 12.1% in November while comparing with 16.5% of loan in the same month of the previous year.

Banks, own within the states, are being hit by means of non-performing loans obtained in the corporate segments. The portfolio of retail loan has now been the focus of banks. Public sector banks provide the auto loan to the customers for free along with home loan, in order to push the retail loans.