State Bank of India has cut interest rate on car loans by 20 basis points from 10.75 per cent to 10.55 per cent for the ensuing festival season.
The bank has cut the processing charge from 0.51 per cent of the loan amount (with a minimum of Rs 1,020) to a flat rate of Rs 500.
The bank has also launched a special festival loan for its Salary Package Accountholders for purchase of consumer durables and two-wheelers.
Discounts are available under this offer, resulting in effective interest rates starting from 12.05 per cent, the bank said in a statement.
The festival offer, which is valid from October 7 to January 31, covers purchase of cars, two-wheelers and consumer durables.
Meanwhile, IDBI Bank will offer home and auto loans at its base rate (the minimum lending rate) of 10.25 per cent.
Under the home loan scheme, the public sector bank has waived both the processing fee, which ranges between Rs 25,000 and Rs 50,000, and the administrative fee of Rs 2,500.
In the case of auto loans, IDBI Bank has waived the processing fee of Rs 1,000.