State Bank of India, the country’s largest bank, has cut interest rates on loans to retail borrowers, transport operators and for farm equipment. The bank said on Wednesday that it had cut interest rates on new home loans by 0.5-1 percentage points as part of its festival offer.
“The bank also gives a discount if the borrower’s salary account is with State Bank of India and a further discount if a higher margin is available,” said a bank release.
The proposed rates are available on all new loans from October 8 to December 31. Home loan rates on 5-15 year tenures were earlier 11.25 per cent, now these loans will be available at 10.25 per cent.
Car and motorcycle loans too will be cheaper by a up to percentage point depending on the amount and tenure.
Personal loans are now 0.5-1 percentage point cheaper. Further, the bank is halving processing charges on all personal loans. Loans for cars will now be available at 11-12 per cent.
For small road transport operators the bank has reduced interest rates by up to 2 percentage points. Interest rates in this segment will now be in the 10-12.25 per cent range. Farmers, too, can buy tractors, power tillers and combine harvesters with loans that are 1-2 percentage points cheaper.