Within a day of RBI reducing repo rate by 25 basis points, the country’s largest lender State Bank of India on February 8 announced a cut in interest rates by 5 basis points on its home loans up to Rs 30 lakh. The new rates are effective from February 8.
In it sixth bi-monthly monetary policy review announced Thursday, RBI had cut the repo rate by 25 basis points to 6.25 percent.
“On the back of the monetary policy announced by the RBI, we have taken the lead to cut interest rates on home loans up to Rs 30 lakh,” the bank’s chairman, Rajnish Kumar, said in a statement.
He said the bank has the highest market share of the home loans market and it is appropriate to empower the large lower and middle class segment by transmitting the rate cut announced by the RBI.