HYDERABAD: State Bank of Hyderabad (SBH), has reduced its Base Rate to 10.05 per cent from 10.20 per cent with effect from May 1.
Banks cannot lend at interest rates lower than Base Rate and reduction in this rate implies lower interest rates on housing, car, education and other retail loans.
Following the Base Rate revision, SBH said it has also reduced interest rate on housing loans with effect from May 4. While loans up to `75 lakh will now have an effective 10.10 per cent interest, loans above `75 lakh will be given at 10.15 per cent as against 10.25 per cent.
The decision to revise rates was taken after SBH’s Asset Liability Management Committee met here on April 29. It may be noted that the RBI, which cut repo rates twice between January and March, insisted that further correction in base rate will happen only when bankers pass on rate cut benefits to consumers. Consequently, several nationalized banks and private players have lowered the rates.