Within a day of reduction of repo rate by 25 basis points by RBI, the country's largest lender State Bank of India announced a cut in interest rates by 5 basis points on its home loans up to 30 lakhs.
In its sixth bi-monthly policy review announced Thursday, RBI had cut repo rate by 25 basis points to 6.25%. "On the back of the monetary policy announced by the RBI, we have taken the lead to cut interest rates on home loans up to Rs 30 lakh", said Rajnish Kumar the chairman in a statement issued by the bank.
The new rates are effective from Friday.