The country’s premier public sector bank — State Bank of India (SBI), on Monday, slashed its prime lending rate by 0.25 per cent to 12.50 per cent, a decision that will make its housing and car loans cheaper.

“Benchmark prime lending rate is revised downward by 0.25 per cent from 12.75 per cent to 12.50 per cent with effect from February 16,” State Bank of India said in a comminique to the Bombay Stock Exchange.

Alongside the SBI, the Bank of India (BoI) also has slashed interest rates on housing loans by 25 basis points and on consumer loans by 250 basis points.

Bank of India slashed its interest rates on housing loans by 25 basis points and on consumer loans by 250 basis points.

The rates on auto loans and personal loans have been reduced by 250 basis points while rates on home loans of up to Rs 20 lakh have been cut by 25 basis points BoI General Manager (Credit) D Krishnamurthy said.

The revised rate for home loans up to Rs 20 lakh is 9.75 per cent. The interest rates on educational loans have also been reduced by 100 basis points.

Bank of India, has however, left its prime lending rate, or the rate at which it lends to its best borrowers, intact at 13.25 per cent.