Festival offer: SBI drops rates on home, other retail loans

State Bank of India, the largest lender in the country, has reduced the interest rates on all retail loans including home loans by 50-100 basis points. The maximum reduction (one percentage point) in rate applies to loans for a duration of 5 to 15 years. The new rates would be applicable for all loans taken between October 8 and December 31, 2007. For loans up to Rs 20 lakh, the revised rate on floating rates above 15 years and up to 20 years is 10.5 per cent (11.25 per cent). Loans above Rs 20 lakh will carry additional 0.25 percentage point interest. Other banks and financial institutions that have cut home loans recently include HDFC Ltd, Bank of Baroda, IDBI Ltd, Union Bank, Canara Bank, Axis Bank, Allahabad Bank and Dena Bank. Housing loans constitute 52.22 per cent of SBI’s retail advances as on June 2007. SBI has also reduced rates on personal loans by 50 basis points to 100 basis points. The bank is also offering a 50 per cent concession in processing charges on all personal segment loans. For small road transport operators in SME sector, the bank has reduced interest rates ranging from 100 to 200 basis points on the existing rates and the revised rates will now be in the range of 10 to 12.25 per cent for various loan maturities. The festival offer is also extended to farm mechanisation loans