The Hindu Business Line : SBI slashes housing, auto loan rates

Apart from slashing interest rates on its retail loans, the bank has also introduced new tenure brackets in the housing segment, SBI officials said on Tuesday.

The revised floating rate for home loans of up to five years is 7.75 per cent (eight per cent). SBI has introduced new brackets of 5-15 years and 15-20 years.

The rate for 5-15 years would be 8.25 per cent (8.75 per cent) while that for 15-20 years has been revised to 8.50 per cent (9.25 per cent).

On a fixed basis, interest rates would be higher by 0.25 per cent than those offered on floating rates.

Similarly, interest rates on auto loans have been reduced to 9.5 per cent from 11 per cent for tenure of up to three years and 10 per cent for 3-7 years.

SBI has been experiencing a slowdown in its rate of growth in housing in some metros. In large part, this has been due to the ruthlessly competitive environment in retail financing, with banks under-cutting each other to capture a larger market share in the wake of little or no credit pick-up in industry segments.

"Banks with their legacy of NPAs have discovered it is safer to lend to the retail segment. This not only ensures credit deployment and broadens the base, but ensures recovery,'' said an official with a public sector bank.

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