SBI freezes new car loans interest rates at 10% for one year: Credit to farmers at 8 per cent
India’s largest bank State Bank of India has frozen interest rates on new car loans at 10 per cent for a period of one year sharply down from the current 11.50%. This move is expected to create demand and spur a slowing auto industry.
The bank also slashed lending rate on credit to farmers against cold storage and warehouse receipts to 8 per cent, the bank said.
The new rates will be applicable to all customers availing loans between February 23 and May 31, 2009,.
After the freeze-period, the rates will be reset at the applicable card rate contracted as on the date of sanction under the respective schemes, the bank said.
SBI also recently froze interest rates on new home loans at eight per cent for one year ... Read more
For its existing customers, the bank has introduced a scheme — "SBI Lifestyle Loan" — under which customers can avail themselves of eight per cent interest rate for one year. However, this facility would be available to the extent of 10 per cent of their home loans but up to a maximum of Rs 5 lakh. This new scheme of eight per cent interest rate will be offered for loans taken during February 2 and April 30, the release had added.
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