Recently, the Reserve Bank of India cut repo rates by 25 basis points, which was in line with expectations.
Some banks have reduced interest rates after RBI Governor Raghuram Rajan pushed the banks to cut interest rates further.
Banks generally have what is called the prime lending rate (PLR) which is the base rate and they do not lend below these rates.
The RBI does not fix the base rate. Individual banks fix their own base rates and so each bank has its own base rate.
This rate generally depends on the banks own asset liabilities. Interest rates move based on this.
Since, beginning of this year, RBI has cut the repo rate by 75 bps.
Here are the latest lending rates by banks which have slashed interest rate after the RBI rate cut.
|Banks||Lending Rates||Applicable from|
|Allahabad Bank||9.95 per cent||02/06/2015|
|State Bank of India||9.70 per cent||02/06/2015|
|Federal Bank||10.20 per cent||16/06/2015|
|HDFC Bank||9.70 per cent||15/06/2015|
|IDBI Bank||10 per cent||10/06/2015|
|Punjab & Sind Bank||10 per cent||10/06/2015|
|Syndicate Bank||10 per cent||10/06/2015|
|Central Bank of India||9.95 per cent||08/06/2015|
It's important to note that the above mentioned are only the base rates. Interest rates on different set of loans differ and are not in anyway at the base rates.
For example, education loans could be at the base lending rates + 2%. This means that it could be 10%+2% for IDBI Bank which is 12 per cent.
Similarly, for auto loans and personal loans. Most loans, especially for retail investors is never lent at the base rate or at the lending rate mentioned above.