Mumbai, June 2: The State Bank of India, the largest lender in India, announced a 15-basis point reduction in base rate today and it would be effective from June 8. The bank reduced the interest home loan and car loan by 0.15 percent to 9.70 per cent. The SBI announced cut in the lending rates soon after the apex bank reduced the repo rate by 25 basis points.
Prior to the review, the repo rate — the interest rate which the central bank levies while lending short-term funds to commercial banks — stood at 7.5 percent. The Reserve Bank of India lowered its short-term lending rate by 25 basis points in a move that could potentially reduce the cost of borrowings on personal and corporate loans.