New Delhi, Aug 02: Based on the Reserve Bank of India (RBI) First Quarter Review of Monetary Policy, where the Statutory Liquidity Ratio (SLR) has been reduced from 24% to 23% with effect from August 11, 2012, the liquidity is expected to increase in the system.
The cut in the SLR will add approximately Rs 100 billion additional liquidity to SBI. To transmit RBI’s Policy expectations by giving a stimulus to Credit Growth for productive purposes as well as deliver value to customers, the Bank has reduced the Home Loan and Car Loan Interest Rate with effect from August 7, 2012.
The Interest Rate on Home Loans has been reduced from 10.75% to 10.25% for loans up to Rs 3 million, For loans above Rs 3 million and upto Rs 7.5 million, the rate of interest has been reduced from 11% to 10.40% and for Loans above Rs 7.5 million, the rate has been reduced from 11.25% to 10.40%.
The revised EMI per lakh @ 10.25% for a loan tenure of 30 years would be Rs. 897.00 against the prevailing EMI of Rs. 934.00
Similarly, to give thrust to Auto Loans, we have reduced Interest Rate from 11.25% to 10.75%, which results in a revised EMI @ 10.75% of Rs. 1699.00 for a loan of Rs. 1 lakh for 7 years loan tenure against the prevailing EMI of Rs. 1,725.00