SBI Bank rate cut (SBI Home loan rate Cut)

SBI, the largest bank of the world in terms of number of branches has joined the other PSU banks like Canara Bank and Allahabad Bank, along with private sector bank like HDFC in cutting the rates. The PLR or Prime Lending Rate of State Bank of India or SBI has been slashed by 0.25% or 25 basis points.

It has been brought down from 12.75% to 12.50%. This will make almost all of the loans offered by SBI cheaper, that includes house loans (home loans) & car loans offered by SBI.
As per the news from PTI (http://www.ptinews.com/pti%5Cptisite.nsf/0/A28D4802C9AB8015652573EC002E09A4?OpenDocument):

The reduction in PLR is likely to moderate lending rates for all category of borrowers, including housing (floating rate), corporate, car loan etc. The decision follows the up to one per cent cut in housing and consumer loan rates announced by Canara Bank and Allahabad Bank.

Housing finance company HDFC and PNB Housing Finance too had reduced interest rate on housing loan. While HDFC reduced its RPLR by 0.25 per cent effective February 1, PNB Housing Finance slashed the rates by 0.5 per cent.

Table of Contents