SBI had last cut its interest rates on home loans and auto loans in November, 2017.
On Monday SBI said that it has extended the ongoing waiver on home loan processing fees till March 31, 2018 for new customers as well as other customers looking to switch their existing loans to SBI. The earlier deadline for a waiver on home loan processing fees was December 31, 2017.
"The reduction in 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 base rate will be benefitted by a 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," said PK Gupta, managing director for retail and digital banking at SBI.
SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. The bank has a deposit base of 26.02 lakh crore.
Prior to the latest announcement, SBI charged an effective interest rate of 8.30 per annum for home loans of up to Rs. 30 lakh for all eligible salaried customers.