New Delhi, Feb 11 : The State Bank of India (SBI) today slashed prime lending rate (PLR) by 0.25 per cent to 12.50 percent.

This decision will make housing and car loans cheaper.

In a communication to the Bombay Stock Exchange (BSE), the SBI said: "Benchmark prime lending rate is revised downward by 0.25 per cent from 12.75 per cent to 12.50 per cent with effect from February 16."

Earlier, Canara Bank and Allahabad Bank announced up to one per cent cut in housing and consumer loan rates.

Housing finance company HDFC reduced its retail prime lending rates (RPLR) by 0.25 per cent and PNB Housing Finance reduced interest rate on housing loan by 0.5 per cent. (ANI)