Good news for home, car buyers! SBI slashes interest rates on home, auto loans to lowest in market

State Bank of India slashed interest rates to lowest for home and auto loans. The country's largest lender in a bid to push retail loans, cut both home loan and auto loan rates by 5 basis points or 0.05 percentage points. 

The new interest rates, SBI is offering loans are at 8.30% for home loan and auto loans at 8.70%. SBI's offering in home loan is the lowest in the market.

The effective interest rate for all eligible salaried customers will be 8.30% per annum for loans upto Rs 30 lakh. For car loan customers, it is between 8.70% per annum to 9.20% per annum compared. It was earliwr in a range of 8.75 -9.25%. 

The exact rate depends on the amount of loan and the credit score of the individual, SBI said. The new interest rates are effective from November 1, 2017. 

SBI has also lowered down the interest rates 25 basis points across most maturities, with effect from November 1, 2017. 

The one-year SBI fixed deposit will now has an interest rate of 6.25% which earlier was 6.5%, mentioned the bank's website. 
According to the new rates, senior citizens will get 6.75% which was 7% earlier. 

With State Bank of India cutting its fixed deposit rates, other banks are also expected to follow suit. 

The country's largest lender had also slashed benchmark lending rate by 0.05% across maturities.

The reduction in marginal cost of funds based lending rate (MCLR) came after a gap of almost 10 months. The bank had last cut the rate on January 1. The move by the SBI will trigger rate cut by other lenders. With the reduction, the MCLR for one year has come down to 7.95% from 8%, SBI website said. The new rate would be effective November 1, it said.

The MCLR on overnight borrowings has been reduced to 7.70% from 7.75%, while the lending rate for three-year tenure has been cut from 8.15% to 8.10%. Similarly, the bank reduced the lending rate by similar percentage point for tenures including one month, three months, six months and two years. 

Meanwhile another public sector lender Allahabad Bank also reduced the MCLR rate by 0.15% across all tenor.