SBI Loans Get Cheaper From Today As New Lending Rates Take Effect

State Bank of India's new key lending rates for home loans came into force on Sunday, May 10, bringing down the EMI burden for eligible borrowers. The country's largest lender by assets earlier this week announced a reduction of 15 basis points - or 0.15 percentage point - in its marginal cost of funds-based lending rate (MCLR) across tenors. With the latest revision, the one-year MCLR came down to 7.25 per cent from the existing 7.40 per cent. That marked the 12th consecutive cut in the MCLR by the state-run lender.

Starting Sunday, EMIs of eligible home loan accounts linked to the MCLR will come down by nearly Rs 255 for a 30-year loan of Rs 25 lakh, SBI said in a press release on Thursday.

The bank also introduced a special deposits scheme for senior citizens, called SBI Wecare Deposit. Under this scheme, an additional premium of 30 bps, or 0.30 percentage point, will be payable for senior citizens' retail term deposits with tenors of five-years and above.

Besides the lending rate, the bank also announced a 20-bps cut in the interest rates for retail term deposits with tenors of up to three years. This will be take effect from May 12.

SBI, which is the country's largest commercial bank in terms of assets, deposits, branches, customers and employees, commands 34 percent market share home loans and 34.86 percent in auto loans segment.