SBI Brings Down Interest Rates On New Loans

SBIMumbai: Here is good news for those dreaming up buying a home or a car, as India’s largest bank, State Bank of India (SBI) has decided to slash interest rates to make the most of the upcoming festive season.

In order to encourage falling demand, SBI has also linked up with a long list of banking institutions, which are providing a special discount on fresh loans.

SBI’s new floating rate home loans will now be cheaper by 0.5-1% effective from October 8 to December 31.

The country’s biggest lender has also slashed the processing fees by 50%. The bank will also extra discount if the borrower has an active salary account.

On the other hand, an extra 0.25% interest will be charged on loans higher than Rs 20 lakhs.

The fixed rate for 10 year loans remains unaltered at 12.75%.

The rates for new car and two-wheeler loans will be reduced by 100 basis points (1%), whereas new personal loan rates will also be reduced by 0.5-1%.

The rates on special deposit schemes -Smart Deposit and Super Saver have also been reduced by 25 bps to 9% from October 8.

SBI’s decision was not sudden as various banking institutions including IDBI Bank, Bank of Baroda and HDFC have recently declared such schemes to magnetize more and more customers.

The ICICI Bank has not yet announced a cut. ICICI functionaries have stated that they will wait for the RBI signal at the end of this month before taking any decision.

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