Government Owned State Bank of India has announced good news for those who are willing to apply Home and Automobile loans. SBI has reduced the existing interest rates on home loans and car loans.
The SBI new Interest rates on home loans up to Rs 30 lakh will be now 8.30%Loans on automobiles have received a cut down. The New loan rates will range from 8.70% to 9.20% compared to the earlier range of 8.75% to 9.25%.
With this announcement, SBI becomes the first bank to give Home loan with lowest interest rate. The latest move from the India’s largest bank is a result of government’s recapitalization package for the public sector banks. To boost up the national economic growth, the Indian Government has recently announced a special package for banks.
State bank of India in an official statement said that “With this reduction in Interest rates, we are offering lowest charges for most of our product offering in the retail loans. The exact rate depends on the amount of loan and the credit score of the individual.”Home loan rates have been reduced for five bps across all brackets.
P.K. Gupta, MD, SBI retail & digital banking said that “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.”
SBI has notably said that the new Interest rates will apply only to the new customers as it has not reduced bank’s marginal cost of fund based lending rate (MCLR), which is at 8%. We can expect all other banks to cut their interest rates following State Bank of India. SBI had last reduced the Interest rate on January 1, due to the effects of demonetization.
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