Thursday, September 6, 2012

SBI sees retail loan uptick after rate cut

Following the reduction in interest rate for retail credit by large banks, demand for such advances was picking up, said Pratip Chaudhuri, chairman, State Bank of India (SBI).

SBI, which had reduced auto and home loans, has seen disbursements double following the rate cut. Lenders such as Union Bank of India, Indian Overseas Bank, Central Bank of India had also lowered their interest rates on home loans and car loans.

Punjab National Bank on Monday said it would now lower home loan rates to base rate, which stands at 10.5 per cent, from the earlier 10.75 per cent. It also reduced car loan interest rate by 50 basis points. Kolkata based-Allahabad Bank reduced retail interest rates and waived processing fees on retail loans. It has slashed home loan rates by up to 200 basis points and car loans by 25 basis points. The cut in interest rate by banks came after Finance Minister P Chidambaram appealed to banks to lower the rates to kick-start consumer...


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