State Bank of India or SBI on Monday announced a reduction in its marginal cost-based lending rate or MCLR by 10 basis points. The move marked the eight consecutive reduction in MCLR by the country's largest bank so far this financial year. The marginal cost of fund-based lending rate, or the MCLR, will now stand at 7.90 per cent for the one-year tenor, down from 8.00 per cent, with effect from December 10, 2019, SBI said in a statement. SBI said the action was to pass on the benefit of its reducing cost of funds to the customers. (Also read: SBI To Deactivate These Debit Cards By December 31)
Here are revised SBI's tenor-wise MCLR, to be effective from December 10:
|Tenor||Existing MCLR||Revised MCLR|
The announcement by SBI comes days after the Reserve Bank of India's six-member Monetary Policy Committee (MPC) unanimously kept the repo rate unchanged at 5.15 per cent. Repo rate is the key interest rate at which the RBI lends short-term funds to commercial banks.
SBI offers several types of home loan products such as regular home loan, flexipay home loan, privilege home loan, shaurya home loan, pre-approved home loan, realty home loan and bridge home loan.
SBI has a market share of around 25 per cent in home loans and auto loans, according to the bank. As on September 30, 2019, the bank has a deposit base of over Rs 30 lakh crore, it said.