The largest Public Bank SBI (State Bank of India) has lower the interest rate, the rates have been reduced by 5 basis points (0.05%) in all other loan brackets, other than it the State Bank of India (SBI), today is providing the major benefit to the customers, which as follows:
- SBI has lowered home loan rate by 0.05% to 8.30%
- It has also reduced the auto loan by a similar percentage point to 8.70%
- The effective interest rate for all eligible salaried customers will be 8.30% per annum for loans up to Rs 30 lakh
- For a car loan customer, interest ranges from 8.70% to 9.20% compared to the earlier 8.75-9.25%
The exact rate depends on the amount of loan and the credit score of the individual, as per SBI “With this reduction, SBI’s offering in a home loan is the lowest in the market. The new rates will come into effect from 1st November,” The reduction in the retail loan rate by SBI is expected to prompt other lenders to go for a similar move and the reduction follows a cut in marginal cost of funds based lending rate (MCLR) two days ago, which came after a gap of 10 months, The Bank last cut the rate in January.
SBI said in a statement said, “A customer who is eligible to take home loan can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme, Over and above of 8.30% rate.”