This Article is From Oct 10, 2019

SBI Home Loans Get Cheaper: Key Things To Know

SBIsaid the revision in MCLR is "in view of the festival season and extending the benefits to customers across all segments."

SBI Home Loans Get Cheaper: Key Things To Know

SBI's MCLR reduction follows a 25 basis points cut in the repo rate by RBI.

State Bank of India or SBI has reduced its benchmark lending rate by 10 basis points or 0.10 percentage points across all tenors. The new rate, effective from today, marks the sixth reduction by SBI this financial year. SBI's marginal cost-based lending rate or MCLR, the rate to which all of its home loans are linked, now stands at 8.05 per cent for the one-year tenor, from 8.15 per cent earlier, according to SBI's statement. SBI said the revision in MCLR is "in view of the festival season and extending the benefits to customers across all segments."

Here are revised SBI's tenor-wise MCLR, effective from October 10:

TenorRevised MCLR (In %)
Over night7.7%
One Month7.7%
Three Month7.75%
Six Month7.9%
One Year8.05%
Two Years8.15%
Three Years8.25%

(Source: sbi.co.in)

MCLR reduction follows a 25 basis points cut in the repo rate by Reserve Bank of India (RBI) last week. Repo rate is the interest rate at which the RBI lends money to commercial banks. RBI has cumulatively lowered interest rates by 135 basis points this year.

SBI has also reduced fixed deposit (FD) interest rates across select maturity. The SBI FD rates have been lowered by 10 basis points (or 0.10 percentage point) across a select tenor in the retail segment.