State Bank of India cuts MCLR by 10 bps across tenors, loans to get cheaper
Due to this rate cut, the one-year MCLR would come down to 8.05 percent a year from 8.15 percent.
SBI's repo-linked lending rate (RLLR) remains unchanged. SBI had come out with revised interest rate for its repo rate linked home loan scheme on October 1, 2019, under which the lowest rate has been revised from 8.05% (5.4%+2.25%+0.40%) to 8.2% (5.4%+2.65%+0.15%). The bank will charge the total spread or margin over and above the repo-rate in computing the interest to be paid by borrowers on new floating rate loans. The effective benchmark rate will be equal to repo rate plus 2.65 per cent.
Tenor-wise MCLRs effective from 10th October, 2019 will be as mentioned below:
|Tenor||Existing MCLR (In %)||Revised MCLR (In %)|
The rate reduction is not applicable to the repo-linked loans. "In view of the festival season and extending the benefits to customers across all segments, we have reduced our MCLR by 10 bps across all tenors," the bank said in a statement.
SBI's MCLR cut follows close in the heels of RBI repo rate cut last week. Now we will have to wait and see if SBI will reduce rate on its RLLR linked loan as well.