Home, auto as well as corporate loans will soon become cheaper for Andhra Bank's customers, as the state-owned lender has announced its decision to slash its benchmark lending rate by 0.25 per cent.

Andhra Bank on Tuesday announced a downward revision in its minimum lending rate or base rate by 0.25 percentage points, from 10.50 per cent to 10.25 per cent.

In addition, the bank also announced its decision to revise the Benchmark Prime Lending Rate by 0.25 per cent to 14.50 per cent.

The lower benchmark lending rates would take effect from March 1, 2013.

Andhra Bank is not the first lender to slash benchmark lending rates. Sate-owned SBI, Punjab National Bank (PNB), Bank of India (BOI), Bank of Baroda and IDBI Bank have already lowered their benchmark lending rates.

The bank moved to slash their respective benchmark lending rates after the Reserve Bank of India (RBI) eased its monetary policy.

In its quarter policy review on January 29, the central bank had slashed key rate for short-term lending by 0.25 per cent.