|The largest lender in the country, State Bank of India has announced a rate cut on its retail loans segment. The bank announced announced about half a percent interest rate concessions on home loans and car loans.
This comes as an attempt to capture more and more retail sector to cover for the lack of demand from the industry sector. The bank is taking advantage of the SLR cut made by Reserve Bank of India, which is supposed to create industry wide liquidity worth Rs. 62,000 crore.
SBI has declared to bring down home loans by up to 60 basis points and car loans by up to 0.50 basis points.
Home loans up to Rs. 30 lakh would come with interest rate of 10.25% compared with 10.50% earlier. Home loans from Rs. 30 lakh up to Rs. 75 lakh will have an interest rate of 10.40% (10.75% earlier). The bank would charge 10.40% (11%) of interest rate for home loans beyond Rs. 75 lakh
On car loans front, the bank has reduced the interest rates from 11.25% to 10.75%, this has resulted in reduction of equated monthly installments (EMI) from Rs. 1,725 per lakh to Rs. 1,699 per lakh.