SBI reduces interest rates for housing and vehicle loans!
Posted on: 09/Sep/2019 1:09:32 PM
The country’s premier public sector bank, the State Bank of India, has announced that it is reducing the interest rate for loans by 0.1% from tomorrow (10th September, Tuesday).
MPI has reduced the interest rate offered for deposits. Accordingly, SBI has reduced the basic interest rate from the present 8.25% to 8.15%.
Subsequent to the Reserve Bank of India’s (RBI) Financial Policy meeting, RBI had ordered that the REP interest rate for the banks are reduced from 5.75% to 5.40%.
RBI had reduced this REPO interest rate 3 times in the months of February, April, and June this year and now, this latest order is the 4th.
REPO interest rate refers to the interest paid by the banks which had availed loan from RBI. Whenever there is a fall in REPO interest rate, the expenses for the banks also come down.
With the objective of passing on the above benefits to the customers, the banks, in turn, reduced the interest rates for the housing and vehicle loans. This is the usual practice.
However, most banks do not undertake the aspect of reduction in interest rate.
In this situation, the State Bank of India has reduced the marginal cost (Basic interest rate) from 8.25% to 8.15%SBI has announced that this revision would be effective from tomorrow (Tuesday, 10th September).
As a result, it is widely expected that the interest rate for various loans, including housing and vehicle, will be reduced.
In a similar vein, it is also announced by SBI that the interest rate for deposits will be reduced by 10 paise to 25 paise.
