New Delhi, Jan 1: In a move which is expected to benefit nearly 80 lakh borrowers, the State Bank of India (SBI) on Monday, January 1, reduced lending interest rate by 30 basis points (bps) to 8.65 per cent.
“Base rate reduced from 08.95% p.a. to 8.65% p.a. w.e.f. 01.01.2018,” the country’s largest public lender said in a state on its website. Base rate in the minimum lending rate below which a bank is not allowed to lend. The bank has also reduced BPLR (Benchmark Prime Lending Rate) from 13.70 per cent to 13.40 per cent. (Also Read: RBI May be Holding Back Rs 2,000 Notes: SBI Report)
“The reduction in base rate is a new year gift to the bank’s loyal customers as a large number of consumers who have their loan linked to base rate will be benefitted by decrease in rates. This reduction is part of bank’s efforts to ensure transmission of reduction in the policy rates in the recent past. Approximately 80 lakh customers will be benefitted by this move,” PK Gupta, managing director for retail and digital banking at SBI, said.
The SBI has also decided to continue till March 31, 2018, the waiver being offered on processing fees on home loans. (Also Read: SBI Branch Name, IFSC Code Change: Full List of New Bank Names)
In November, the SBI lowered home loan rate by 0.05 per cent to 8.30 per cent, the lowest in the industry.