SBI takes lead, lowers EMIs after RBI cuts repo rate

The country's largest lender State Bank of India has been the first off the block to lower interest rates with a 40 basis point cut in its base rate to 9.3%. The reduction follows a 50 basis point reduction in the repo rate by Reserve Bank of India on Tuesday. The rate cut, which is effective October 5, will put pressure on other home loan providers such as HDFC and ICICI. With this rate cut the gap between SBI and it's rivals has widened. SBI currently extends home loans at 9.7% for women and 9.75% for others. It's nearest rivals offer loans at 9.85% and 9.9%.