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State Bank of India reduces interest rates on Car and Home loans

August 2, 2012 - Mumbai

India's largest lender State Bank of India has cut the home and auto loan rates by up to 50 basis points effective August 7. The interest rates on car loans will be reduced to 10.75% from the current 11.25%. The equated monthly installment on a seven-year loan declines to Rs. 1699 from Rs. 1725 for every Rs. 1 lakh. The revision will be applicable only to new borrowers and will not affect the existing loans.

SBI chairman Pratip Chaudhuri said "For a bank as a whole even if cut the rate from 11 to 10.5% so long as money is coming from release of SLR at 7.5% or 8%, it is an add to our bottom line".

LoanUp toInterest rate reduction
Housing LoanRs. 30 lakhCut to 10.25% from 10.50%
Rs. 30 lakh - Rs. 75 lakhCut to 10.40% from 10.75%
Above Rs. 75 lakhCut to 10.40% from 11%
Car loansCut to 10.75% from 11.25%

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