SBBJ cuts rate on car loans by up to 1.5%

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State Bank of Bikaner and Jaipur, an associate of country's largest lender SBI, announced a cut of up to 1.5 per cent on car loans.

The bank has revised down interest rates on car loans by 1-1.5 per cent for state government employees, it said in a filing with the Bombay Stock Exchange.

Under the category of loans with a repayment period of 3 years, advances below Rs 7 lakh would attract an annual interest rate 1.5 per cent lower than the benchmark prime lending rate at 11.50 per cent, the bank said.

For loans above Rs 7 lakh with a repayment period of 3 years, the interest rate has been cut down by one per cent from BPLR to 12 per cent, it said.

For loans with a tenure of above 3 years, the bank has cut interest rates by one per cent to 12 per cent a year.

The revised rates for state government employees would be applicable on new car loans from March 1, the bank added.

Earlier, the bank had also slashed home loan rates by up to 1.25 per cent.

Finance Minister P Chidambaram had asked PSU banks to provide adequate loans to housing and consumer goods borrowers as these sectors have been partly affected by the "conscious" moderation in credit growth.