State Bank of India cuts MCLR by 5 bps, home loans cheaper by 10 bps

State Bank of India (SBI) on Wednesday reduced its MCLR by 5 bps across all tenors and slashed interest rate on home loans up to Rs 30 lakh by 10 basis points.

One-year MCLR will be 8.50% per annum (pa). The interest rates on all loans linked to MCLR stand reduced by 5 bps from April 10, 2019, India’s largest lender said in statement.

Now the applicable interest rate for such housing loans below Rs.30 lacs will range from 8.60% p.a. to 8.90% p.a. Prior to the rate cut decision range for rate was 8.70% p.a. to 9.00% pa.

SBI has linked its Cash Credit /Over Draft rates above Rs one lakh to the repo rate for better transmission of RBI’s policy rates. The benefit of reduction in repo rate by 25 bps by RBI (from April 04 2019) will get passed on in its entirety to CC/OD customers banking with SBI from May 01 2019, it added.

SBI has linked its Savings Bank rates to the repo rate. Thus the saving bank rates shall also stand revised from May 01 2019. For balances up to Rs one lakh rate will be 3.50 per cent p.a., comprising almost 95% of SB account holders.