November 12, 2008, Ratekhoj.com. State Bank of India, India’s largest public sector bank, has cut interest rates on car loans by 75 bps or 0.75% effective from November 10, 2008. This cut in car loan rates applies to both new as well as used vehicles. Car loans are offered only in the floating rate category by State Bank of India.

Interest rates on loans for purchase of new cars with a loan period of less than 3 years and a loan amount of Rs. 7.5 lacs & above is now 11.75%. Interest rate for purchase of new cars with a loan period of less than 3 years and a loan amount of less than Rs. 7.5 lacs is 12.00%.

For loan period of 3 to 5 years, the interest rate is 12.00% for all loan amounts for new cars. The interest rate is 12.25% for a loan period of 5 to 7 years for new cars and all loan amounts. State Bank of India does not offer car loans for a loan period of more than 7 years.

For used cars, State Bank of India is offering an interest rate of 15.50% for loan period of upto 3 years and 15.75% for loan period of above 3 years and upto 7 years. These rates apply to all car loan amounts.

This cut in car loan rate is based on a cut in State Bank of India’s Bank Prime Lending Rate (BPLR) announced earlier. State Bank of India has also announed a cut in its fixed deposit interest rates effective from December 1, 2008.

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