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SBI to hike auto loan rates by 0.75% |
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Written by Arumai_Nagappan
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Thursday, 08 March 2007 |
The country’s major loaner, State Bank of India (SBI) has decided to raise car and other personal loan rates, excepting housing and education, by an average of 0.75 per cent.
On the sidelines of the launch of electronic system for excise and service taxes, SBI MD Ashok Aggarwal said, “We have announced hike in benchmark prime lending rates by 75 basis points...Consequently, we will be raising rates of all (personal) loans, except for housing and education, by 75 basis points on an average.”
Mr. Aggarwal elucidated that a few loan rates may climb by one per cent and others by 0.50 per cent, but the normal increasing rate would be 0.75 per cent. This increase in interest rates would be declared within few days.
Consistent to enhancement in CRR by the RBI, SBI had declared 0.75 per cent in its benchmark PLR to 12.25 per cent last month.
But, all the surviving home and educational loans plus latest educational loans up to Rs 4 lakh are booted out from the increase. Likewise, all the existent and upcoming farming production loans below Rs three lakh are excluded from its impact.
SBI had also raised interest rates on its depository schemes.
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