State Bank of Bikaner and Jaipur, an associate of State Bank of India has reduced its interest rates by 1-1.5 % on car loans taken by state government employees. The new interest rates are applicable on car loans taken from 1st March onwards.

For loans of more than 7 lakh and a repayment period of 3 years, the interest rates have been slashed to 12% a year as compared to benchmark prime lending rate (PLR) of 13% a year. For loans of less than 7 lakh with a repayment period of 3 years, there has been a 1.5% reduction in the interest rate.

Incase of repayment period of more than 3 years, the bank has reduced the rate of interest by 1% to 12% a year.

Keeping pace with the industry trend of decreasing interest rates, the bank has also reduced its interest rates by 0.25% on education loans of less than 4 lakh. The interest rate on home loans has been reduced upto 1.25% as compared to the PLR.

The Finance Minister has advised the public sector banks to reduce its interest rates on home loans and loans on consumer goods to enable a large number of people to purchase these commodities.