Country's largest bank, the State Bank of India now offers home loans starting at 8.30 per cent, and auto loans at 8.70 per cent. In an attempt to push retail loans, the money lender cut both, home loans and auto loan rates by 5 basis points or 0.05 percentage points. Rates have been reduced by 5 bps point in all the brackets. SBI's offering in home loan is now the lowest in the market with the reduction. In a statement, the bank said the new rates will be effective from November 1, 2017. Effective interest rate for all eligible salaried customers will be 8.30 per cent per annum for loans up to Rs 30 Lakh.
Loan amount for car loans ranges from 8.70 per cent per annum to 9.20 per cent per annum as compared to earlier range of 8.75-9.25 per cent. Exact rate depends on the amount of loan and the credit score of the individual. Above the 8.30 per cent rate, an eligible home loan customer can also avail of an interest subsidy of Rs 2.67 Lakh under the Pradhan Mantri Awas Yojana scheme. The announcement comes a day after the bank reduced the benchmark lending or marginal cost of funds based lending rate by 0.05 per cent across maturities. PK Gupta, MD, Retail and Digital Banking, SBI, said, “With this reduction in rates, we are offering lowest rates for most of our product offering in the retail loans. Lower rates along with wide distribution network and use of digital technology to enhance customer experience is a perfect package for any retail loan customer.”