On its home loan offering, the largest public sector lender SBI has slashed interest rate by 5 basis points to 8.3% per annum which the bank now claims to be the lowest rate for home loan in the market. For the auto loan, the bank reduced its starting interest rate to 8.7% as against 8.75% earlier.
On the rate cut, P K Gupta, MD, Retail and Digital Banking, SBI, said, "SBI has always been at the forefront in the passing the benefit to customers. With this reduction in rates, we are offering the lowest rates for most of our product offerings in retail loans."
The rate cuts have been brought about in all the brackets. For loans up to Rs. 30 lakhs, all eligible salaried class people can avail loan from SBI at an effective rate of 8.3%. In addition to this, home loan borrowers can also avail an interest subsidy under the Pradhan Mantri Awas Yojana (PMAY) scheme of Rs. 2.67 lakhs.
Car loans shall now be offered at an interest rate ranging between 8.7-9.2% depending on the loan size as well as credit score of the borrower. Earlier the rates for auto loan stood between of 8.75- 9.25% pa.