The State Bank of India has made its home and auto loans cheaper. The new rates will be effective from November 01, 2017.

Good news for SBI customers and for those willing to take a home or auto loan in the near future. The State Bank of India, India’s largest bank, has made its home and auto loans cheaper. The bank has reduced home loan interest rates by 05 basis points to 8.30% per annum. Similarly, its auto loan will now be offered at a starting interest rate of 8.70% per annum compared to the earlier 8.75%. With this reduction, SBI’s offering in the home loan segment has become the lowest in the market, as the bank claims. The new rates will be effective from November 01, 2017.

The effective interest rate for all eligible salaried people will be 8.30% per annum for loans up to Rs 30 lakh. Rates have been reduced by 5 bps point in all the brackets. Over and above of 8.30% rate, an eligible home loan customer can also avail an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme.

For car loan customers, the loan amount now ranges from 8.70% per annum to 9.20% per annum compared to earlier the range of 8.75% to 9.25% pa. The exact rate depends on the amount of loan and the credit score of the individual, the bank said.

Talking about the reduction in the lending rates, P K Gupta, MD, Retail and Digital Banking, SBI, said, “SBI has always been at the forefront in the passing the benefit to customers. With this reduction in rates, we are offering the lowest rates for most of our product offerings in retail loans.”