SBI slashes interest rates for new SME(small and medium enterprises) loans.

State Bank of India(SBI) has reduced lending rates for new SME loans up to Rs 5 lakh to eight per cent and that for loans of Rs 5-25 lakh to 10 per cent, SBI Chief General Manager B S Bhasin said. "The idea is to help SMEs in the face of economic downturn. With today's rate reductions, SBI is now offering cheaper loans to customers that would help them tide over the crisis," Bhasin said.

SBI used to offer SME loans up to Rs 5 Leah for 8.5-10.5 per cent and loans of Rs 5-25 lakh for 9-11 per cent. The rate reductions will be available for the next two years and will be applicable for working capital and term loans provided they are covered under CGTMSE cover, Bhasin said. After two years, the bank will review the rates according to the prevailing market conditions, the bank said.