Comments
State Bank of India has cut its savings bank (SB) deposit rate by 25 basis points (bps) from 3 per cent to 2.75 per cent. Simultaneously, India’s largest bank has also reduced its marginal cost of funds based lending rate (MCLR) by 35 bps across all tenors.
These rate cuts come as the banking system is awash with liquidity and the appetite for credit is lacklustre.
The SB rate cut will be effective from April 15, 2020. The MCLR cut will be effective from 10, 2020.
The bank, in a statement, said one year MCLR will come down to 7.40 per cent from 7.75 per cent. In FY2020, the Bank has cut MCLR 10 times consecutively. The latest MCLR cut is the first one in FY2021 and the eleventh consecutive cut since FY2020.
Consequently, EMIs (equated monthly installments) on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs. 24 per Rs 1 lakh on a 30 year loan.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.