State Bank of India reduced the car loan rates to 11.25 per cent, after the Reserve Bank of India reduced the repo rate by 0.5 per cent last week. The cut makes the SBI loans cheapest in the market, as other leading banks currently offer a rate between 11.50 to 14.75 per cent.
Other banks are also expected to slash the rates in near future, bringing them on par with SBI. The rate cut was predicated by SIAM few weeks back, along with double digit growth for the auto industry in 2012-13. This will still comes as a relief for both customers and manufacturers who have been reeling under inflation and also the price hikes after the2012-13 Union Budget.
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