SBI cuts lending rates by 10 bps; home loans to go cheaper

TIL Desk/Business/New Delhi/ Public sector lender State Bank on Monday announced yet another reduction in lending rates by 10 basis points across tenors. The new rates are effective Tuesday, the lender said announcing the third rate reduction in the current fiscal year.

In a press release, SBI stated that it will reduce reduced MCLR (marginal cost of lending rate)s rates by 10 basis points (bps) across all tenors with effect from tomorrow, i.e., September 10. (1 basis point = 0.01%). Due to this rate cut, the one-year MCLR SBI MCLR rate today has come down to 8.15 percent a year from 8.25 percent.

This is SBI’s fifth consecutive cut in MCLR in FY 2019-20. SBI has announced a further cut in fixed deposit interest rates. The public sector bank has slashed the retail FD rates by 20-25 bps across all tenors, effective Tuesday. The lender attributed the falling interest rate scenario and surplus liquidity for realigning its interest rate on term deposits.