The country's leading lender State Bank of India (SBI) on Tuesday April 7, 2020 announced a 35 bps cut in marginal cost of funds-based lending rate (MCLR) across tenures. 1 basis point is one-hundredth of a percentage point. After this cut, retail loans including home loan will get further cheaper.
After the cut 1-year MCLR at the bank stands reduced to 7.4% against the earlier 7.75% per annum from April 10, 2020.
"Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs. 24.00 per 1 lakh on a 30-year loan," SBI added.
Also, on the sideline SBI slashed interest rate on its savings account from the earlier 3% to 2.75%. The new revised rate on savings account will come into effect from April 15.
This is the 11th time the bank has implemented rate cut.
Previously, on March 27, bank slashed repo linked lending rate (RLLR) as well as external benchmark linked lending rate (EBR) by 75bps.