The reduction in MCLR lowers the home loan rates by 35 basis points since April 10, 2019.State Bank of India (SBI) has reduced its benchmark lending rate by fifteen basis points or 0.15 percentage points across all tenors.
The new rate, effective from today, marks the fourth reduction by SBI this financial year, the country's largest lender said in a statement.
State Bank of India's MCLR, the rate to which all of its loans are linked, now stands at 8.25 per cent for the one-year tenor, from 8.40 per cent earlier, according to SBI's statement.
This reduction in MCLR lowers the home loan rates by 35 basis points since April 10, 2019.TenorPrevious MCLR (In %)Revised MCLR (In %)Over night8.057.9One Month8.057.9Three Month8.17.95Six Month8.258.1One Year8.48.25Two Years8.58.35Three Years8.68.45(As mentioned on SBI's website- sbi.co.in)With this cut, SBI's effective repo linked lending rate (RLLR) for cash credit/overdraft customers will stand revised to 7.65 per cent from September 1.SBI's revision of its marginal cost of funds-based lending rate (MCLR) came after the Reserve Bank of India's Monetary Policy Committee (MPC) slashed the repo rate by 35 basis points.
Repo rate is the interest rate at which the central bank lends money to commercial banks.SBI's move was followed by several other public sector lenders including Bank of India, Union Bank of India and Andhra Bank.
Other banks that passed on rate cut include Allahabad Bank, IDBI Bank Oriental Bank of Commerce and Syndicate Bank.
After delivering a 35 basis points rate cut in the policy, the RBI governor Shaktikanta Das said that he expects banks to follow the lead of the financial markets, where there was full transmission of policy rates that were reduced in the current cycle of easing.(With inputs from PTI)Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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