NEW DELHI State Bank of India (SBI), the largest public sector bank, has taken another leap to give further boost to the retail loan by reducing home loan and auto loan by 5 basis points (bps).
The bank has reduced Home Loans interest rates by 5 basis points to 8.30 per cent per annum. Similarly, Auto loan is now offered at a starting interest rate of 8.70 per cent per annum compared to earlier from 8.75 per cent.
With this reduction, SBI’s offering in home loan is the lowest in the market. The new rates will be effective from November 1, 2017. Speaking on the reduction in the rate, PK Gupta, MD, Retail and Digital Banking, SBI said “SBI has always been at the forefront in the passing the benefit to the customers.
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 & use of digital technology to enhance customer experience is a perfect package for any retail loan customer.”
The effective interest rate for all eligible salaried customers will be 8.30 per cent per annum for loans upto Rs. 30 lacs. Rates have been reduced by 5 bps point in all the brackets. Over and above of 8.30 per cent rate, an eligible home loan customer can also avail of an interest subsidy of Rs. 2.67 lacs under the Pradhan Mantri Awas Yojana scheme.
For car loan customer, the loan amount ranges from 8.70 per cent per annum to 9.20 per cent per annum compared to earlier range of 8.75 per cent to 9.25 per cent PA. The exact rate depends on the amount of loan and the credit score of the individual. (AGENCIES)
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