Central Bank of India on Wednesday cut the benchmark prime lending rate by 0.5 per cent to 11 per cent and slashed the interest rate for agri and SSI loans, while offering higher returns on savings of senior citizens.

All the loans that are linked to BPLR would be reduced by 0.5 per cent from Thursday, the bank said in a statement.

Buoyed by improvement in the agriculture sector, the bank also decided to slash the interest rates on farm loans.

Agriculture advances upto Rs 50,000 would attract only 8.5 per cent interest, while for loans of Rs 50,000-100,000 it would be 9 per cent and for loans of over Rs 100,000, the interest would be charged at BPLR of 11 per cent.

The bank also slashed its interest rates for small scale industries to 8.75 per cent for advances upto Rs 50,000, 9 per cent for Rs 50,000-100,000 and 11 per cent for over Rs
100,000.

The bank decided to give 0.5 per cent higher interest to senior citizens of over 70 years, resulting in an overall benefit of one per cent over the nominal interest rate.

Among the banks which had reduced the BPLR include State Bank of India, Union Bank, Bank of Baroda, Punjab National Bank and Canara Bank.