The rate cut on retail loans will be applicable on all new loans from October 8 to December 31, while the reverse mortgage scheme for senior citizens above 60 years will be offered at all SBI branches from October 12.

Simultaneously, SBI also reduced interest rates on deposits under two special schemes by 0.25 per cent to 9 per cent with effect from October 8.

"We reduced interest rates on Smart Deposit Scheme of 550 days and on Super Saver Term Deposit of 4-5 years duration by 0.25 per cent to 9 per cent," PTI quoted SBI CGM Personal Banking Sangeet Shukla as saying.

For senior citizens too, it was good news as SBI announced its entry into reverse mortgage, through which they can avail loan, released in monthly or quarterly installments or as a lump sum payment at the beginning, against the security of the house they own and live in.

SBI cuts home, personal loan rates for festive season
New Delhi: State Bank of India has slashed its interest rates on home loans, auto loans and personal loans. That's a big relief for first time buyers.

The interest rate cut on new home loans will be between 0.50 per cent to 1 per cent depending on loan maturities and amount.

It's almost the festive season and India's biggest lender has also announced interest rate cuts on auto and personal loans.

Where as interest rates on new car and two-wheeler loans have been reduced by up to 1 per cent, the personal loans are cheaper by 0.50 per cent to 1 per cent.