On June 27, 2009, State Bank of India (SBI) further slashed its interest rate on its Ezee Car Loan scheme to attract more credits. Till date, private banks such as the HDFC Bank, ICIC Bank were very popular for car loans but SBI is now is curving its niche in this segment.
Under the new Ezee Car Loan scheme of SBI, car buyers would pay 8% interest in the first year and then 10% interest in the second and third year. The scheme will continue till September 30, 2009. The Telegraph reports:
The EMI on Rs 1 lakh loan under the new scheme will be as low as Rs 1,559 in the first year and Rs 1,647 in the second and third year.
The interest rate will be reset from the fourth year at the card rate contracted as on the date of sanction, depending on the tenure of the loan.
The card rates are 25-75 basis points below the bank’s prime lending rate (PLR). The bank recently brought down its PLR to 11.75 per cent.
Earlier in February 2009, the interest rate for the Ezee car loan was 10%. Due to positive response from the customers, SBI decided to continue the scheme at an attractive interest rate. Under the new scheme, customers would not have to pay any processing fee. Aside from buying cars, SBI is also providing balance transfer facility which would allow customers, who took loans from other banks, to transfer their loans to SBI at lower rates.