State Bank of India has cut home loan and car loan rates. This could trigger a rate war among banks to attract retail customers as loans to the industry have slackened.
SBI’s rate cut gambit comes in the wake of the RBI effecting a one percentage point cut in the statutory liquidity ratio on Tuesday. The SLR cut is seen allowing banks the cushion of additional liquidity.
India’s largest bank has cut home loans by up to 0.60 percentage points and car loans by 0.50 percentage points.
The interest rate on home loans up to Rs 30 lakh will be 10.25 per cent (10.50 per cent earlier).
On home loans beyond Rs 30 lakh and up to Rs 75 lakh, the bank will charge 10.40 per cent interest (10.75 per cent). The interest rate on home loans beyond Rs 75 lakh will be 10.40 per cent (11 per cent earlier).
SBI has cut interest rates on car loans to 10.75 per cent from 11.25 per cent earlier. The equated monthly instalment on car loans of seven-year tenor has been reduced to Rs 1,699 per lakh from Rs 1,725.