State Bank of India, the country's biggest bank, on Wednesday announced up to 0.50 percentage point reduction in interest rate on home and car loans.
The relief comes a day after the Reserve Bank of India (RBI) announced 1 percentage point cut in statutory liquidity ratio (SLR) on Tuesday that is expected to release around Rs. 63,000 crore for banks.
The bank said interest rate on home loan of up to R. 30 lakh will now be 10.25% from existing 10.50%. Loans of Rs. 30 lakh-Rs. 75 lakh will be charged 10.40% from current 10.75%.
Loans above Rs. 75 lakh will be charged 10.40% from existing 11%. Now on, the bank will have only two rates - 10.25% and 10.40% - for home loans.
Interest rate on car loan has been brought down to 10.75% from 11.25%. The reduced rates will come into effect from August 7. The bank has left the base rate, or minimum lending rate, unchanged.