SBI has also reduced its interest rate on home and auto loans.
Here are five things that you must know about SBI's cut in MCLR:
1) With the reduction, the MCLR for one year has come down to 7.95 per cent from 8 per cent, SBI website said.
2) The MCLR on overnight borrowings has been reduced to 7.70 per cent from 7.75 per cent, while the lending rate for three-year tenure has been cut from 8.15 per cent to 8.10 per cent.
3) Similarly, SBI reduced the lending rate by similar percentage points for tenures including one month, three months, six months and two years.
5) The RBI is keen for banks to lower lending rates further to accelerate credit growth and private investment in the economy. Last financial year, bank loans grew at their slowest pace in more than six decades, according to a report by news agency Reuters.
Meanwhile, rates on fixed deposit (FDs) were also cut by SBI by 25 basis points, with effect from Wednesday. The one-year SBI fixed deposit will fetch an interest rate of 6.25 per cent, from 6.50 per cent earlier, according to the bank's website. (With Agencies Inputs)
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