Mumbai, Nov 2 (IANS): India's largest lender State Bank of India (SBI) on Thursday announced reduction of interest rates on home and automobile loans by five basis points (bps).

In a statement issued here the bank said, it has reduced home loan interest rates to 8.30 per cent.

Similarly, automobile loan is now offered at a starting interest rate of 8.70 per cent per annum compared to earlier 8.75 per cent.

With this reduction, SBI's offering in home loan is the lowest in the market. The new rates will be effective from November 01, the SBI claimed.

The effective interest rate for all eligible salaried customers will be 8.30 per cent per annum for loans upto Rs 30 lakh.

Rates have been reduced by five bps in all the brackets.

Over and above of 8.30 per cent rate, an eligible home loan customer can also avail of an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana scheme.

For car loan customers, the loan amount ranges from 8.70 per cent per annum to 9.20 per cent per annum compared to earlier range of 8.75 per cent to 9.25 per cent.

The exact rate depends on the amount of loan and the credit score of the individual.