Money & Banking

SBI cuts 1-year MCLR by 10 bps to 7.9%

Our Bureau Mumbai | Updated on December 09, 2019 Published on December 09, 2019

While the Reserve Bank of India has maintained status quo on the policy repo rate front, State Bank of India has decided to cut its one-year benchmark Marginal Cost of funds based Lending Rate (MCLR) by 10 basis points effective December 10

After the latest cut, SBI's one-year MCLR comes down to 7.90 per cent per annum from 8.00 per cent per annum.

With India's largest bank linking floating-rate home and MSME loans to an external benchmark (repo rate) with effect from October 1, 2019 and fresh loans being sanctioned with reference to the repo rate, the MCLR cut is likely to benefit only borrowers who have taken loans pre-October 1.

This is the eighth consecutive cut in MCLR by SBI this fiscal year. The RBI left the policy repo rate (the rate at which banks borrow short-term funds from the RBI to overcome liquidity mismatches) at 5.15 per cent in its fifth bi-monthly monetary policy review.

Published on December 09, 2019
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