SBI reduces its MCLR, housing loan rates from April 10

Taking a cue from recent policy measures announced by the Reserve Bank of India (RBI), the State Bank of India (SBI) on Tuesday, reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 bps across all tenors, resulting in MCLR coming down from 8.55 percent per annum to 8.50 percent per annum.

This has also caused the interest rates on all loans linked to MCLR to reduce by 5 bps from April 10.

The country's largest commercial bank has also made its housing loans more affordable by reducing the interest rate by 10 bps on loans up to Rs. 30 lakh. As of now, the applicable interest rate for such Housing loans below Rs 30 lakh will range from 8.60% p.a. to 8.90% p.a. (from existing rates of 8.70% p.a. to 9.00% p.a.).

MCLR is linked to the costs banks pay on their deposits and hence, a lower MCLR is an indication of the reduction in bank deposit rates.