SBI Cuts Car Loan Rates By 0.5% to 11.25%

State Bank Of India has announced a 0.5% cut in car loan rates. The largest Indian bank is the first one to announce a reduction in car loan rates after the Reserve Bank Of India (RBI) reduced repo rates by 50 basis points or 0.5%.

Drivespark.com had earlier reported about RBI's possible rate cut. After RBI made its announcement SBI is the first bank to cut car loan rates. Other banks are also expected to make a similar announcement in the next few days.

Car loans are currently available for interest rates ranging between 11.%% and 14.5%. We expect these car loan rates to come down within this week. Banks would not want their customers to move to other banks offering cheaper car loans and hence will definitely reduce their interest rates. This is a good news for both car buyers and car sellers.

Many car buyers can now get themselves a new car without having to pay high interest rates. Car sellers can now expect to see more people walking in to showrooms as and when attractive interest rates become effective.

The Indian car industry suffered hugely last year mostly due to high car loan rates and fuel prices. With no fuel price hikes in the recent three months, the news of reduced car loan rates is expected to get a positive response.