SBI All loans would become cheaper by 0.40%.

RBI cut benchmark repurchase (repo) rate from 7.25% to 6.75%, lowest in four-and-half-years.

Soon after reduction in repo rate by the Reserve Bank of India (RBI) , country’s largest lender State Bank of India (SBI) on Tuesday (September 29, 2105)  slashed minimum lending or / base rate by 0.4% to 9.3 %, setting the trend for benign interest rate regime.
With the reduction in the base rate, all loans, including housing loan, auto laon and corporate laon, would become cheaper by at least 0.40 per cent.

The SBI bank has decided to reduce the base rate by 0.40% to 9.3% with effect from 2015 October 5, SBI said in a statement.

“RBI has cut interest rate by 0.50%, we have reduced it by 0.40%,” SBI Chairperson Ms. Arundhati Bhattacharya said.

The bank will also be cutting fixed deposit rates by 0.25% across various maturities from October 5, she added.

“We will definitely keep looking at ways and means of bringing down rate further. Going ahead, weakening of rate will add to growth of credit,” Ms. Bhattacharya said.

With the reduction, SBI’s base rate is the lowest in the market. The reduction by the largest lender is likely to be followed by others.

Meanwhile, Andhra Bank also reduced its base rate by 0.25% to 9.75%.
Base rate is the minimum rate below which a bank can’t lend to consumers.

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