The largest public sector bank in the country, the State Bank of India, on Friday (20th February) said it will freeze interest rates on new car loans at 10% per annum for a period of one year. The new scheme is called as ‘SBI Car Loan’. The interest rate would be re-set after the freeze period at the applicable card rate contracted as on the date of sanction under the respective new car loan schemes.

 

'SBI Car Loan' also offers the longest repayment period of up to 84 months without any advance EMI. The new scheme is on offer for a limited period. It is only valid between February 23, 2009 and May 31, 2009, across India and the interest rate will be reset on these loans at the contracted rate after June 1, 2010.

 

The bank also slashed lending rate on credit to farmers against cold storage and warehouse receipts to 8 per cent. Earlier the State Bank of India has already come out with its one-year, 8%-interest rate on home loans.