SBI reduces Interest Rates!
Posted on: 30/Mar/2020 6:14:23 PM
Subsequent to the Reserve Bank of India reducing the REPO interest rates, the country’s premier public sector bank, the State Bank of India, has reduced the loan interest rate by 0.75%.
This will be effective from 1st April. This will apply to the loans taken on the Stock market basis and REPO interest basis.
On a 1-year basis, the interest in share market-based loans is reduced from 7.8% to 7.05% and the interest rates for the REPO-based loans from 7.4% to 6.65%.
Accordingly, if a loan has been taken for Rs. 1 Lakh to be paid back in 30 years, 52 EMIs will be reduced.
The Governor of the Reserve bank of India made several announcements 2 days ago including the postponement of EMI payments. Subsequently, the Chief of the State Bank of India Rajneesh Kumar informed that all term-loan EMIs will also be postponed by 3 months.
When enquiring about what are term-loans wit the experts on the banking sector, they informed that all housing loans, vehicle loans, and agriculture loans come under this category.
Accordingly, it is gathered that the EMIs will automatically get postponed by 3 months.
At the same time, following the Reserve Bank of India’s announcement, the State Bank of India has reduced the interest on Fixed Deposits. Accordingly, the interest rate for fixed deposits is down by 0.2% to 0.5%. This measure is expected to create great hardships for the pensioners and senior citizens!
