State Bank of India (SBI), the country’s largest lender, has slashed the marginal cost of funds based lending rate (MCLR) by 35 basis points across all tenors and interest rates on savings bank accounts by 25 bps to 2.75 per cent.
The one-year MCLR has come down to 7.40 per cent from 7.75 per cent with effect from April 10, 2020. “This is the eleventh consecutive cut in MCLR in FY 2019-20,” the bank said in a statement.
Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs 24 per Rs 1 lakh on a 30 year loan. The SBI move follows the RBI decision to slash Repo rate by 75 basis points to 4.40 per cent and cash reserve ratio by 100 basis points in last monetary policy review.
SBI has also slashed its interest rates on savings bank deposits, with effect from April 15, 2020 “in view of adequate liquidity in the system”. For balances up to Rs one lakh and above Rs one lakh, SB deposit rate has been reduced by 25 bps from 3 per cent to 2.75 per cent. Other banks are also set to slash the rates in the coming days.
On March 27, SBI passed on the entire 75 bps Repo rate cut to its borrowers availing loans linked to external benchmark linked lending rate (EBR) as well as Repo linked lending rate (RLLR).
With effect from April 1, 2020, EBR had come down to 7.05 per cent per annum from 7.80 per cent. It has cut RLLR to 6.65 per cent per from 7.40 per cent. Consequently, EMIs on eligible home loan accounts (linked to EBR or RLLR) will get cheaper by around Rs 52 per one lakh on a 30 year loan.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines