State Bank of India (SBI) today announced a reduction in interest rates on various retail loans as well as loans for transport operators and farm mechanisation.As part of the festive season offer, the bank has reduced interest rates on all new home loans, car loans, two-wheeler loans and personal loans. Home loans are now cheaper by 0.50% to 1% depending on loan maturities and the amount of loan. The bank is also offering a discount if the borrower has a salary account with it and a further discount if a higher margin is available.Interest rates on new car and two-wheeler loans have been reduced by up to 1% depending on the amount and maturity of loan. New car loans are now available at 11% to 12% depending on the loan amount, maturity and type. Similarly, personal loans are now cheaper by 0.50% to 1%. In addition, the bank is offering 50% concession in processing charges on all personal segment loans.For small road transport operators in the SME sector, the bank has reduced interest rates by 1% to 2% and the applicable rates will now be in the range of 10% to 12.25% for various loan maturities.The festival offer is also extended to farm mechanisation loans (tractors, power tillers, combine harvesters, etc.) by a reduction in interest rates ranging from 1% to 2% with immediate effect.The proposed rates are applicable for all new loans sanctioned on or after October 8, 2007 and are valid up to December 31, 2007.
