The State Bank of India has cut the interest rate on auto loans. However, its base rate - the minimum possible lending rate - remains the same. Kotak Mahindra and United Bank, on the other hand, have reduced base rates.
The slashing of rates has been triggered by the RBI cutting their rates by 50 basis points. SBI has cut rates by 75 basis points, bringing car loans to 11.25 per cent. United Bank of India has reduced its base rate by 15 bps, making its base rate 10.45 per cent, while Kotak Mahindra Bank went bigger with 25bps, bringing its base rate to 9.75 per cent. SBI still has the lowest base rate among government-owned banks, with a base rate of ten per cent.
There is more good news for petrol car buyers - public sentiment has swung towards diesel, so dealers are finding it really hard to sell petrol models and variants. You can expect to get a heavy cash discount, or goodies like gold coins or even expensive televisions if you bargain hard for a petrol car. Manufacturers are also throwing their weight behind this push to clear stocks by increasing dealer margins for petrol models and variants.
