Country’s leading lender, State Bank of India announced 15 basis points or 0.15 per cent cut in the interest rate on loans across all tenors within hours after Reserve Bank of India’s cut the repo rate by 35 basis points to 5.40%.
This makes the fourth consecutive cut by SBI in MCLR (marginal cost of funds based lending rate) in the current financial year. “The 1 Year MCLR would come down to 8.25% p.a from 8.40% p.a. with effect from 10th Aug 2019,” the bank said in a press release.
With Wednesday’s cut in interest, home loans have become cheaper by 0.35 per cent since April 2019, SBI said.
The bank said it has also linked home loan products with RBI’s repo rate from July 1 this year. RBI’s repo rate cut brings down SBI’s effective Repo Linked Lending Rate (RLLR) for the cash credit/overdraft customers to 7.65 per cent with effect from September 1, the bank said.
“SBI has effected the full transmission of repo rate cuts by RBI and has passed on the benefit of the repo rate reduction by 85 bps during the current financial year to its CC/OD customers with Limits above Rs. 1 lakh,” SBI said.
RBI had cut Repo rates thrice by 0.25 per cent since February and handed down another 0.35 per cent on Wednesday taking the Repo rate down to 5.40 per cent