INSUBCONTINENT EXCLUSIVE:
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
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
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