State Bank of India (SBI), the country's largest lender, has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points (bps) across all tenors with the 1-year MCLR coming down from 8.55% per annum to 8.50% per annum.
As a result, Interest rates on all loans linked to MCLR stand reduced by 5 bps with effect from 10th April 2019, a press release from SBI said.
The release said SBI had made its housing loans more affordable by reducing the interest rate by 10 bps on loans up to Rs. 30 lakh. Now the applicable interest rate for such housing loans below Rs. 30 lakh will range from 8.60% p.a. to 8.90% p.a. (from existing rates of 8.70% p.a. to 9.00% p.a.), it said.
With SBI having linked its CC/OD rates above Rs. 1 lakh to the repo rate for better transmission of RBI’s policy rates, the benefit of the reduction in repo rate by 25 bps by RBI with effect from 4th April, 2019 will get passed on in its entirety to such CC/OD customers banking with SBI with effect from 1st May, 2019, it said.
Since SBI also has linked its savings bank (SB) rates to the repo rate, the saving bank rates shall also stand revised with effect from 1st May, 2019.
The new rates will be as follows:
For balances up to Rs. 1.00 lakh; 3.50 % p.a. (comprising almost 95% of SB account holders)
For balances above Rs. 1.00 lakh; 275 bps below repo rate i.e. effective rate being 3.25% p.a.
(Our News Desk can be contacted at firstname.lastname@example.org)