State Bank of India (SBI) today reduced interest rates on loans for car and consumer durables and also decided to lower processing charges to cash in on the festival season demand.
The move follows decisions of Punjab National Bank, Oriental Bank of Commerce and IDBI Bank to offer special interest rates for loans to buy automobiles and consumer durables. The decision comes nearly a week after the government decided to pump in funds in PSU banks so that they can lower rates to stimulate demand in the targeted sector.
According to the country’s largest bank, interest rate on car loan has been slashed by 0.20 per cent to 10.55 per cent against the earlier 10.75 per cent. “Processing charge has also been cut from 0.51 per cent of the loan amount with a minimum of Rs 1,020 to a flat rate of Rs 500,” it said.
The bank has also launched a special festival loan for its salary account holders for purchase of consumer durables and two-wheelers. Attractive discounts are available under this offer resulting in effective interest rates starting from 12.05 per cent, it said.
Meanwhile, mid-sized public lender Dena Bank also trimmed lending rates on a slew of products. The bank will offer home loans up to Rs 1 crore at base rate of 10.25 per cent and those above it at the interest rate of 10.50 per cent. It is offering a combo loan for car and consumer durables with housing loan. The government lender is offering consumer durable loans along with housing credit at 11.75 per cent.
State Bank of Patiala (SBOP) also announced that it was slashing interest rates on car and consumer durables loans in the festival season. The lending rate for car loans has been reduced by 10 basis points to 10.65 per cent, the bank said. Indian Overseas Bank has also cit its interest rates on consumer durable loans by 200 basis points to 13.25 per cent from 15.25 per cent earlier.
Other banks too cut rates
* Dena Bank trimmed lending rates on a slew of products. The bank will offer home loans up to Rs 1 crore at base rate of 10.25%
* State Bank of Patiala also announced that it was slashing interest rates on car and consumer durables loans
* Indian Overseas Bank has also cut its interest rates on consumer durable loans by 200 basis points to 13.25 per cent from 15.25 per cent