State Bank of India, on Wednesday, slashed lending rates on car and home loans by up to 0.5 per cent, a day after one per cent cut in SLR by the Reserve Bank.

SBI has reduced interest rate on home loans of up to Rs. 30 lakh to 10.25 per cent from existing 10.50 per cent (after 0.25 per cent concession over the card rate), a senior bank official said.

On the home loans of beyond Rs. 30 lakh but less than Rs. 75 lakh, the new rate will be 10.40 per cent against the existing 10.75 per cent, down 0.35 per cent.

The new rates would be effective from August 7, the official added. The base rate or minimum lending rate of SBI stands at 10 per cent. Base rate is the benchmark rate below which a bank cannot lend.

With regard to the car loan, the reduction is to the extent of 0.5 per cent.

The new car loan would be 10.75 per cent against the existing rate of 11.25 per cent for a seven-year loan. Now for every Rs. 1 lakh, a customer has to pay Rs. 1,699 EMI against Rs. 1,725 per month earlier. SBI claimed this as the lowest EMI. With the reduction, a borrower would end up saving Rs. 312 per year on every one lakh.

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