The proposed rates are applicable for all new loans sanctioned on or after October 8 and is valid up to December 31, the Bank said here in a statement.

SBI home loans are now cheaper by 0.50-1 per cent depending on loan maturities and amount of loan. The bank also gives discount if the salary account is with the SBI and further discount if a higher margin is available.

The interest rates on new car loans and two-wheeler loans have been reduced by 1 per cent depending on the amount and maturity of loan.

Loans for new car loans will now be available on interest rates of 11-12 per cent depending on the loan amount, maturity and type of loans.

Similarly, the personal loans are now cheaper by 0.50-1 per cent. Additionally, SBI is offering 50 per cent concession in processing charges on all the personal segment loans.

SBI has also reduced interest rates for small time road transport operators in SME sector by 1-2 per cent on the existing rates. The applicable rates will now be in the range of 10-12.25 per cent for various loan maturities, it said.

The festival offer has also been extended to farm mechanisation loans (tractors, power tillers, combine harvesters, etc.) by reducing interest rates ranging from 1-2 per cent with immediate effect.