A recent press report said that the largest lender of the country, State Bank of India has planned to enter into the mortgage market of the United Kingdom.
Reports said that the bank has planned to take this step in order to expand its retail business even further. The lender would begin with the category of home loans called buy-to-let mortgages.
Buy-to-let mortgages loan refers to loans that will be offered to landlords and the loan amount will range from 50,000 pounds to 1.5 million pounds. The loan to value ratio in this case will be up to 60%.
According to a statement released by the bank its target market is all UK property investors and not just the Indian community. It also said that the bank has decided to launch this project now as the mortgage market has changed and its more prudent lending criteria can be competitive.
State Bank of India is the largest Indian banking and financial services company with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent.