New Delhi: In a move that will make housing and auto loans cheaper, four public sector banks, led by State bank of India, has announced slashing the Prime Lending Rates by 0.25-0.50 per cent.

For the second time in less than 10 days, the country's largest lender SBI slashed Prime Lending Rate by 0.25 per cent to 12.25 per cent. The bank had announced, on February 11, cutting the PLR by 0.25 per cent effective from February 16.

"Benchmark Prime Lending Rate (PLR) is revised downward by 0.25 per cent from 12.50 per cent to 12.25 per cent with effect from February 27," SBI said in a communique to the Bombay Stock Exchange.

The reduction in PLR is likely to moderate lending rates for all category of borrowers, including housing (floating rate), corporate, car loans.

Moreover, Bank of India and Union Bank also announced reduction in PLR by 0.5 per cent to 12.75 per cent today.

Bangalore-based Canara Bank also cut PLR by 0.25 per cent to 12.75 per cent.

Earlier last month, housing finance company HDFC and PNB Housing Finance too had reduced interest rate on housing loan.

While HDFC reduced its RPLR by 0.25 per cent effective February one, PNB Housing Finance slashed the rates by 0.5 per cent.

RBI Governor Y V Reddy, while announcing the quarterly monetary policy review on January 29, had asked bankers to explore the possibility of reducing interest rates in the light of high net interest margin.

Source : PTI