India's largest bank State Bank of India gave a new year gift for its 8 million borrowers with a sharp cut in lending interest rate by 30 basis points (bps) to 8.65 percent with effect from January 01, 2018.
"Base rate reduced from 08.95% p.a. to 8.65% p.a. w.e.f. 01.01.2018," SBI said on its website.
The reduction in the base rate will benfit nearly half of all home loan borrowers.
Earlier on September 28, SBI had last revised its base rate by 5 basis points, which led to Andhra Bank and Bank of Baroda following suit.
Also, SBI has decided to extend on-going waiver on home loan processing fees till March 31, 2018 for new customers keen on buying their dream house and other customers looking to switch their existing loans to SBI. The bank has also reduced BPLR (Benchmark Prime Lending Rate) from 13.70 percent to 13.40 percent.