State Bank of India reduces lending rates on home and vehicle loans

The State Bank of India has reduced interest rates on home and automobile loans. (REUTERS)

India’s largest lender State Bank of India (SBI) on Thursday announced reduction of interest rates on home and automobile loans by five basis points (bps).

In a statement issued in Mumbai, the bank said it has reduced home loan interest rates to 8.30%.

Similarly, automobile loan is now offered at a starting interest rate of 8.70% per annum compared to the earlier 8.75%.

With this reduction, the SBI’s offering in home loan is the lowest in the market. The new rates will be effective from November 1, the SBI said.

The effective interest rate for all eligible salaried customers will be 8.30% per annum for loans up to Rs 30 lakh.

Rates have been reduced by five bps in all the brackets.

Over and above of 8.30% 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.

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

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