SBI will soon introduce pre-approved personal loan for salaried people facing cash crunch

• SBI said it in in the process to introduce a pre-approved personal loan offering through YONO to provide relief to the salaried customers who are facing cash-flow problem due to coronavirus

India’s largest bank State Bank of India or SBI has clarified that it is currently not offering any emergency loan scheme via its Yono app. But SBI said that it will soon introduce a pre-approved personal loan offering through YONO for salaried customers who are facing cash-flow problem due to coronavirus crisis.

“This is regarding the news being widely reported about ‘SBI Emergency Loan scheme via YONO’. We would like to clarify that SBI is not offering any such loan at present. We also urge our customers not to believe on these rumours,” SBI said in a statement.

“However the bank is in the process to introduce soon a pre-approved personal loan offering through YONO to provide relief to the salaried customers of SBI who are facing cash-flow problem due to Covid,” SBI said in a statement.

SBI said the details of the new product will be communicated once it is launched.

SBI had on Thursday slashed its marginal cost of funds based lending rate (MCLR) by 15 basis points, and introduced special deposit scheme for senior citizens with higher interest rate. SBI’s marginal cost of funds based lending rate (MCLR) comes down to 7.25% from 7.40% with effect from today, lowering the home loan EMIs for customers whose loans are linked to the MCLR rates.

The country’s largest lender has introduced a new product ‘SBI We care Deposit’ for senior citizens in the retail term deposit segment to safeguard their interests in the current falling rate regime.

Under this new product, an additional 30 basis points premium will be payable for senior citizens retail term deposits with ‘5 Years and above’ tenor only, it said.

However, SBI slashed its Interest Rate on Fixed Deposits or FDs by 20 basis points for ‘up to 3 Years’ tenor effective from May 12, citing adequate liquidity in the system as well as with the bank.