The bank cut lending rate on home loans by 0.50 per cent, while the reduction in rates for auto loans is 1 per cent.
The cut in lending rate for consumer durables loans of up to Rs 5 lakh is 1.75 per cent.
The bank offers home loans of up to Rs 50 lakh at base rate of 10.25 per cent for all tenors. For loans of above Rs 50 lakh, the interest rate is 10.50 per cent.
The processing charges are fully waived for loans up to Rs 25 lakh, while 50 per cent concession is offered on loans above Rs 25 lakh, it said.
With regard to auto loans, it said the rate of interest is 10.65 per cent for u pto Rs 50 lakh and 50 per cent of applicable processing charges are waived.
Similarly, the rate of interest has been reduced from 12.25 per cent to 10.50 per cent for kitchen and home appliances, solar panels, water heaters etc.
The offer is available for a period of four months till January, 2014.
For the advantage of customers, the bank has made a special arrangement with New India Assurance Company Ltd in offering vehicle insurance coverage at attractive premium.
Earlier this week, SBI too had launched festival offers along with other public sector lenders.
According to the country's largest bank, interest rate on car loan has been slashed by 0.20 per cent to 10.55 per cent against the earlier 10.75 per cent.
"Processing charge has also been cut from 0.51 per cent of the loan amount with a minimum of Rs 1,020 to a flat rate of Rs 500," SBI said.