Last week Reserve Bank of India (RBI) had cut both repo rate and cash reserve ratio by 25 basis points each. This has lead to several banks lowering their base rates. This in turn has lead to cheaper Home and Auto loan rates. The good news is most banks have not yet started lowering their Fixed Deposit rates.
Below is the summary of Loan Rate cuts that happened last week:
- IDBI Bank, Bank of Baroda (BoB), Canara Bank, Bank of India (BoI), Union Bank of India (UBI) and Punjab National Bank (PNB) has cut their base rate by 0.25% to 10.25%. This would make all the loans linked to base rates cheaper by at least 0.25%.
- State bank of India (SBI) has cut its base rate by 5 basis points [1% = 100 basis points] to 9.70%. So the new Home loan rates have come down to 9.95% for loans below Rs 30 lakhs and 10.10% for loans above Rs 30 Lakhs.
- Indian Bank has cut base rates by 0.3% to 10.2%.
- Oriental Bank of Commerce (OBC) has cut its base rate by 0.15% to 10.25%
- Royal Bank of Scotland (RBS) has cut its base rate by 0.75% to 9%.
- HDFC Bank has lowered interest rate on car and two-wheeler loans by 0.25 per cent and 0.5 per cent respectively. After rate cut the range would be 10.5-11.5 per cent for repayment period between 36 and 60 months for Car Loan and 19.25 per cent to 22.25 per cent for Two wheeler Loan.
- Federal Bank has cut the interest rate on car loans to 10.45%.
- Indian Overseas bank (IOB) has announced to give home loans up to Rs 75 lakh at its base rate of 10.5 per cent.
You can expect more such announcements from Banks this week too.