SBI also announced personal loan up to Rs 20 lakh at the interest rate starting from 10.75%.

Eyeing the upcoming festival season, State Bank of India (SBI), the country's largest lender, on Tuesday announced that it has waived off processing fees on car loans. “The bank is offering lowest interest rate starting from 8.70 per cent to customers opting for car loan, with no escalation in interest,” the public sector lender said in a statement. The announcement by the bank comes at a time when the passenger vehicle sales have declined for the ninth month in a row.



SBI is also offering an additional discount on applying for car loans through its digital platforms. "For customers applying for a car loan online through Bank's digital platform like YONO/ Bank's website, the Bank is providing 25 bps (basis points) concession on interest rate," noted SBI's statement. One basis point is equal to one hundredth of a per cent.

The salaried customers can also avail the loan up to 90 per cent of the car's on-road price.

Domestic passenger vehicles sales plunged 30.98 per cent to 2,00,790 units last month, according to data from industry body SIAM or Society of Indian Automobile Manufacturers.

The slowdown in the auto sector has led to job cuts, with initial estimates suggesting that automakers, parts manufacturers and dealers have laid off about 3.5 lakh workers since April, a senior industry source told news agency Reuters.

SBI also announced personal loan of up to Rs 20 lakh at the interest rate starting from 10.75 per cent with the longest re-payment tenure of 6 years.

(Also read: SBI reduces key lending rates, home loans to get cheaper)

Salary account customers can avail pre-approved digital loans up to Rs. 5 lakh through YONO app in four clicks, it further said.

The bank said it is offering education loan at an interest rate starting from 8.25 per cent for loan up to Rs. 50 lakh and up to Rs 1.50 crore for studies in India and abroad respectively and customers will be offered the longest re-payment tenure of 15 years.