Good news for the State Bank of India (SBI) customers. The bank has brought New Year’s cheer for its customers by reducing its Base Rate as well as the Benchmark Prime Lending Rate (BPLR) by 30 basis points (bps) with effect from January 01, 2018. The revised base rate has been reduced from 8.95% to 8.65% for the bank’s existing customers, while BPLR has been reduced from 13.70% to 13.40%. Additionally, the bank has decided to extend the on-going waiver on home loan processing fees till March 31, 2018 for new customers keen on buying their dream house as well as other customers looking to switch their existing loans to SBI.
Talking about this development, PK Gupta, managing director – retail and digital banking, SBI, said, “The reduction in our 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 the base rate will be benefitted by decrease in rates. This reduction is part of the 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.”
It may be noted that SBI had made its home and auto loans cheaper in the beginning of November this year. The bank had reduced home loan interest rates by 05 basis points to 8.30% per annum. Similarly, it had started offering auto loan at a starting interest rate of 8.70% per annum compared to the earlier 8.75%. With this reduction, SBI’s offering in the home loan segment had become the lowest in the market, as per the bank’s claims. The new rates became effective from November 01, 2017.
After making its home and auto loans a bit cheaper, SBI had also slashed its fixed deposit (FD) rates by 25 basis points across most maturities, effecting from November 1, 2017. For instance, retail domestic term deposits (below Rs 1 crore) of less than 2 years is now fetching interest rates of up to 6.25% as against 6.5% earlier, while deposits ranging from 2 years to 10 years are fetching 6% interest as against 6.25% earlier. Similarly, term deposits made by senior citizens of less than 2 years are fetching interest up to 6.75%, while deposits between 2 years and 10 years are giving 6.50% return.