State Bank of India (SBI) has reduced its marginal cost of funds-based lending rate (MCLR) by 5 basis points across all tenors with effect from May 10.
With this move, SBI has cut its MCLR twice by 5 bps each after the Reserve Bank of India cut its policy repo rate by 25 basis points, from 6.25 per cent to 6 per cent, in early April.
Following the MCLR cut, SBI’s benchmark one-year MCLR has come down from 8.50 per cent to 8.45 per cent. “As a result, interest rates on all loans linked to the MCLR stand reduced by 5 bps.This is the second rate-cut in one month. After the April monetary policy review, the MCLR was reduced by 5 bps,” SBI said in a statement. With today’s MCLR cut, the reduction in the home loan rates since April 10 till date is 15 bps.