On Friday, the State Bank of India (SBI) announced a 5 basis points deduction in its MCLR (marginal cost-based lending rate) across all tenures. The 1-year MCLR (to which most loans are linked to) was reduced to 8.45 percent from the earlier 8.50 percent.
In a press release, the lender said, "As a result, interest rates on all loans linked to MCLR stand reduced by 5 bps with effect from 10 May, 2019." This the second time that that SBI has deducted its MCLR in a month's time. Since 10 April, the total reduction in the MCLR has been 15 bps.
The revised MCLR with effect from 10 May 2019 are as follows:
|Tenure||Previous MCLR (In %)||Revised MCLR (In %)|
Term deposits interest rates were also lowered for some tenures. SBI's website shows that, with effect from 9 May 2019, the interest rates on domestic term deposits below Rs 2 crore for the tenures greater than 2 years were cut. On the other hand, interest on deposits for a period of 1 year to less than 2 years was increased from 6.80 percent to 7 percent.
Here are the revised rates on term (fixed) deposits below Rs 2 crore with effect from 9 May.
|Tenure||Interest rates w.e.f. 22.02.2019 (%)||Revised interest rates w.e.f. 09.05.2019 (%)||Senior citizen interest rates w.e.f. 22.02.2019 (%)||Revised senior citizen interest rates w.e.f. 09.05.2019 (%)|
|7 days to 45 days||5.75||5.75||6.25||6.25|
|46 days to 179 days||6.25||6.25||6.75||6.75|
|180 days to 210 days||6.35||6.35||6.85||6.85|
|211 days to less than 1 year||6.40||6.40||6.90||6.90|
|1 year to less than 2 year||6.80||7.00||7.30||7.50|
|2 years to less than 3 years||6.80||6.75||7.30||7.25|
|3 years to less than 5 years||6.80||6.70||7.30||7.20|
|5 years and up to 10 years||6.85||6.60||7.35||7.10|