SBI cuts interest rate on home, auto loans to lowest at 8.30% and 8.70% respectively

For car loan customers, the loan amount ranges from 8.70 percent per annum to 9.20 percent per annum compared to earlier range of 8.75— 9.25 percent.

The exact rate depends on the amount of loan and the credit score of the individual, it added.

Other lenders including HDFC Ltd, ICICI Bank, Axis Bank and LIC Housing Finance among others are offering home loans at 8.35 percent.

Over and above of 8.30 percent rate, an eligible home loan customer can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme, the bank said.

This comes a day after SBI reduced the benchmark lending or the marginal cost of funds based lending rate (MCLR) by 0.05 percent across maturities.

MCLR is the minimum rate below which banks cannot lend to customers. The bank went ahead with the MCLR cut after a gap of 10 months.

SBI had last cut the rate on January 1, 2017 after it was flush with deposits post demonetisation.

Speaking on the reduction in the rate, P K Gupta, MD, Retail and Digital Banking, SBI said “ 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 and use of digital technology to enhance customer experience is a perfect package for any retail loan customer.”

This move by SBI is also likely to encourage other banks to cut the MCLR.