Dec 27, 2005 05:28 PM
3083 Views
(Updated Dec 27, 2005 05:30 PM)
When reviewing this bank I am confining myself to loans only. I will not comment on the other services being offered by the bank - like savings accounts, demand drafts, ATM cards etc.
The basic thing to consider when taking a loan - in my case a home loan - is the interest rate. I find that SBI is among the most transparent banks when it comes to this criteria. The interest rates are very competitive and SBI is among the handful of banks which charge interest at a daily reducing balance!!! Means the outstanding is reduced the moment any amount is paid and the interest is charged at the reduced amount from that very instant.
Charges
Apart from the initial processing charges there are no other charges being levied by the bank. I am not referring to the penal charges like bounced cheques, missed payments etc. I know of a lot of banks which levey annual charges, administrative charges, statement charges etc. Here is a bank that gives free service even during these times.
The best part for loan takers is that the bank DOES NOT LEVY ANY PREPAYMENT CHARGES. For people who want to preclose their loans, this is a dream come true. Of course there are charges if the loan is transferred to some other bank.
Customer Support
This is one bank that has not seen the need for call centers. In a way that is good for everyone who has taken a loan from the bank. Because even if we have to personally go to the branch and spend a couple of hours there, we are sure that our problem is going to be solved by the time we walk out of the branch. The customer can actually talk directly to the officials of the branch and not to some unknown, unintelligible call center exec who has no clue about banking.
Improvement needed
The bank could do with some young faces. Most of the officials are in their late 40s and are not what a young customer would want to see at the front office. This said, I also have to admit that these officers know their job, and usually have all the information I need.
Internet services need to be improved. The bank currently does not have any internet banking facility for their loan customers.
The process needs to be speeded up. There are too many documents that are required by the bank. The customer also needs to meet the lawyers, engineers etc of the bank before the housing loan is actually sanctioned. It would be a lot better if the bank can handle all this and keep the process transparent to the customer.
All in all, even though it is a drag on your time and patience, I would recommend taking a loan from SBI. Once the loan is sanctioned, there are not going to be too many occasions where we would be requiring to visit the bank anyway.
