SBI Loans To Get Cheaper As Bank Reduces Key Lending Rate

State Bank of India (SBI) said on Friday that it has reduced its MCLR (marginal cost of funds-based lending rate) by 5 basis points across all tenors. One basis point is equivalent to 0.01 per cent or 1/100th of a per cent. After the revision, the state-run lender's one-year MCLR stands lowered to 8.45 per cent per annum from 8.50 per cent. Effectively, the interest rates on all loans linked to MCLR will be reduced by 5 bps with effect from May 10, 2019, SBI further said in its statement.

With Friday's MCLR cut, the reduction in the home loan rates since April 10, 2019 till date is 15 bps, according to SBI.

Here's a list of State Bank of India (SBI)'s tenor-wise MCLRs with effect from May 10, 2019: 

Last month, the bank had reduced its benchmark lending rates by five basis points across all tenors. It had also reduced its interest rates by 10 basis points on housing loans of up to Rs. 30 lakh. The moves followed a 25-basis-point reduction by the Reserve Bank of India (RBI) in repo rate - the key interest rate at which the RBI lends short-term funds to commercial bank.

From May 1, SBI reduced its interest rates applicable to savings bank accounts with balances above Rs. 1 lakh. That means SBI customers with Rs. 1 lakh or more in their savings accounts with the bank will now earn interest at the rate of 3.25 per cent, as against 3.5 per cent previously.