SBI lending rates: State Bank of India and a few other banks are expected to cut the lending rates from January 2017 onwards. This is deemed to provide the much-needed boost to consumption that has been hurdled by the demonetisation policy of the Modi-led government.
SBI lending rates to be cut down
The news came as a relief to the intended car and home buyers as these will be available on comparatively cheaper rates once the lending rates are cut down. However, the cash withdrawal limit will remain the same i.e Rs 24000 per week and Rs 2500 per day.
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State Bank of India has not given any official statement on the issue.
“Post demonetisation a number of customers have repaid their loans, many are refraining from borrowing. So demand for the bank loans has disappeared but at the same time the banks are flushed with funds”, said bank chief.
The data by Reserve Bank of India shows that the bank credit amount has risen by 1.2 percent i.e. rs 73 lakh crore in 2016 from the time period April 1 to December 9. While during the same duration in 2015, the bank credit rose to Rs 69.6 lakh crore i.e. by 6.2 percent.
“The ministry is in dialogue with the banks on measures that can be taken to boost investment.
