PTI

Bhopal, Feb 23: The State Bank of India (SBI) on Monday announced slashing of its car loan interest rate to 10 per cent from an average of 11.5 per cent, and waiving off its car loan processing fee for a year.

"We have decided to slash the car loan interest rate to 10 per cent today for a year," SBI (Madhya Pradesh and Chhattisgarh) Chief General Manager D K Jain told reporters here.

The SBI has also waived its car loan processing fee for a year from Monday, he said.

He said that the SBI had taken the decision as part of social obligation keeping in mind the demand and production that have been affected in the automobile sector following the economic recession.

"A dip in demand and production, leads to trimming of workforce causing unemployment as well," he added.

The SBI feels that the slashing in the car loan interest rate will stable the demand and production and keep employment intact in this sector, Jain said.