In a latest development, State Bank of India, the country’s largest lender, has decided to extend the special offer for auto and home loans by five months till September, this year.

According to banking officials, the move was taken to benefit those peoples, who felt the April deadline was insufficient for availing of the scheme.

Under the offer, which was earlier valid till the end of April, the bank had frozen the interest rate on new home loans at 8 per cent during the first year, while the cost of auto loans was fixed at 10 per cent during the first year.

Subsequently, the interest rate was to be revised to the prevailing rate.

According to reports, SBI has sanctioned loans worth Rs 2,500 crore to over 20,000 customers under the special home loan scheme till date. The lender launched the scheme in February 2009.

As of December 2008, , SBI’s home loan portfolio grew 21.56 per cent to Rs 52,062 crore, while its auto loan portfolio surged 32.14 per cent to Rs 8970 crore, compared to Rs 6788 crore it had disbursed till December 2007.