The country's leading state-run lender SBI on Friday announced the launch of repo-rate linked home loans from July 1.
Also, the bank said that it will transmit the rate cut by the RBI of 25 basis points to some of its cash credit borrowers. In March, the bank had linked all its short term loans including cash credit and over draft accounts with limit of more than Rs. 1 lakh to the RBI's key policy rate plus a spread of 2.25%.
Consequently, the bank has also reduced the effective repo-linked borrowing rate for CC and OD accounts that will come into effect from July 1. "The benefit of reduction in the repo rate by 25 bps has been passed in its entirety to our CC/OD customers (limits above ₹1 lakh), with effect from July 1", said the bank.
And with repo rate now reduced to 5.75%, the effective repo-linked lending rate or RLLR in case of CC or OD customers is 8%.
For savings deposits above Rs. 1 lakh, the bank had pegged its rate to 2.75% below the repo rate. And hence the new rate for savings account with higher deposits now stands at 3%.