SBI lowers lending rates by 15 bps from Aug 10

Within hours of a steeper 35 basis points reduction in the repo rates by the Reserve Bank of India to 5.4 percent in its fourth consecutive step, the largest lender State Bank of India announced a 15 basis points reduction in its lending rates, effective on August 10 across all tenors.

Also read: RBI cuts interest rate by 35 bps, EMIs likely to come down

The new one-year marginal cost based lending rates (MCLR) will come down to 8.25 percent from 8.40 percent annum, the lender said in a statement. With this reduction, the bank’s effective repo-linked lending rate (RLLR) for cash credit accounts (CC) / overdrafts (OD) customers will be revised downwards to 7.65 percent, from September 9.

Also read: SBI Shanghai becomes first Indian bank to link up with China payment system

After this cut, home loans of the bank have become cheaper by 35 bps since April. The bank is offering repo-linked home loans from July 1, 2019.