State Bank of India has reduced interest rates by 0.25-1 per cent for small scale industries, small businesses and agriculture.

The rate for short-term loans between Rs 25,000 to Rs 50,000 upto one year for SSI and small businesses has been cut by 1 per cent to 8.75 per cent, SBI said in a release, adding the effective date was November 1.

Loans between Rs 200,000 to 500,000 would be charged an interest of 10.5 per cent, down by 0.75 per cent, it said.

However, the interest for the slab between Rs 50,000 to Rs 200,000 remained unchanged at 9.75 per cent, it said.

Similar benefit has been extended for loans above one year as well, the bank added.

SBI said the rates for agriculture sector loans has been reduced by 0.25 per cent for term loans between Rs 50,000 to Rs 200,000 at 10 per cent, while the cut is 0.5 per cent at 10.5 per cent for those between Rs 200,000 to Rs 500,000, it said.