The demand for loans will increase and loans to become cheaper for borrowers. SBI announced revised Benchmark Prime Lending Rate (BPLR) down by 50 basis points effective from June 29, 2009. SBI country’s largest lender slashed its BPLR to 11.75 per cent.
SBI reduced its BPLR in January 1, 2009 by 75 points and currently BPLR stands at 12.25 per cent. Decision of SBI will influence other lender to cut down their rate and home loans, car loans and other loans to become cheaper for borrowers.
SBI had reduced deposit rate by 25 points across all maturities to bring down the cost of funds. SBI rate cut comes within a fortnight of Finance Minister asking state owned banks to soften rates.
The rate of deposit for 1000 days tenure was reduced from 7.75 to 7.50 per cent, for deposit 2 years or less than 1000 days the rate was cut from 7.50 to 7.25 per cent. The rate for deposit from 1 year to less than 2 years was reduced from 7.25 to 7 per cent and the deposit for tenure of 181 days and less than one year the rate is 6.25 against 6.50 per cent.
SBI informed the Bombay Stock Exchange, BPLR was revised down 50 basis points and this will be effect from June 29. The new rate for BPLR will be 11.75 per cent against current rate of 12.25 per cent.
Reference:
- SBI cuts BPLR by 50 bps to 11.75%
- SBI slashes BPLR by 50 bps
- SBI cuts rate by 50 bps, home and car loans to become cheaper
Tags: Home Loans, Housing, Housing India, indian real estate, loans, market trend, property, Real Estate India, SBI
