SBI slashes lending rate! Take a look at how loans got cheaper

Mumbai:  In good news for those seeking loans, the country’s largest lender, State Bank of India (SBI) has slashed its benchmark lending rates by 5 basis points, effective from November 1.

In its first cut in 10 months, SBI is offering one-year loans at an interest rate of 7.95 per cent. Currently, SBI’s lending rates are the lowest in the market.

Here is a look at all the interest rates for all tenures:

This means that auto and home loans will attract lesser interest – at 8.70 per cent and 8.30 per cent respectively.

The rates are effective immediately for new subscribers. However, for existing customers, in case of home loans, the interest rates are fixed for a term of one year and borrowers will have to wait to receive the benefit after the the lock-in period. 

For salaried women borrowers seeking loans of less than Rs 30 lakh, the bank will currently charge 8.3 per cent and for loans between Rs 30 lakh and Rs 75 lakh, it will charge 8.40 per cent. 

For non-salaried women borrowers requiring a loan below Rs 30 lakh, the bank will now levy 8.4 per cent interest and for loans between Rs 30 lakh and Rs 75 lakh, it will levy 8.5 per cent interest. For all other borrowers, the bank charges 5 basis points above the rates charged to women borrower. 

The slash in the lending rates comes within weeks of Chairman Rajnish Kumar taking charge of the bank’s operations.