As per SBI revised plan, Car loans above Rs. 75 lakh will be charged 10.40% interest rates from existing 11.25%, while Home Loans of Rs. 30 lakh- Rs. 75 lakh will be charged to 10.40%, from 10.75%.
People who lend money upto Rs. 30 lakh will now pay interest with 10.25% from current 10.50%.
Reports said, the revised home and auto loan rates will set to applicable by August 7 and only for new loans, there is no relief for existing customers, follow their current rate, but with unrevised minimum lending rate.
Moreover, the existing borrowers can refinance their loans for a fee as RBI and National Housing Bank requiring lenders permits them with waiving pre-payment charges, enable customers to take advantage of lower rates to refinance their mortgage.
The decision came in wake to boost retail credit even as economic growth is slowing. Just a day ahead, RBI announced 1 percentage point cut in statutory liquidity ratio (SLR) that is expected to release around Rs. 63,000 crore for banks, and for SBI it would be Rs 10,000 crore which is currently invested in government bonds