The State Bank of India (SBI) on Wednesday (October 9) announced reduction in its marginal cost of fund based lending rate (MCLR) by 10 basis points across all tenors, effective October 10.
This is the sixth time that the country’s largest lender has cut its MCLR or minimum lending rate in the current financial year. The rate reduction is not applicable to the repo-linked loans.
The MCLR cut will make home and other retail loans cheaper for the existing borrowers. MCLR is the minimum interest rate that a bank can lend at.
“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.
With this reduction, the one year MCLR, to which all the lending rates are linked to, is set at 8.05 per cent as against 8.15 per cent earlier.
The cut in MCLR follows a 25 bps reduction in repo rate by the RBI last week.