India's largest lender, State Bank of India, on Tuesday slashed the marginal cost-based lending rate (MCLR) by 35 basis points across all tenors, a move that followed on the heels of RBI rate cut to tackle the economic fallout from the coronavirus pandemic.
It's SBI's 11th consecutive cut in MCLR in FY 2019-20. The one year MCLR will be 7.40% per annum with effect from April 10, 2020.
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The one-year tenor is the benchmark against which most of the consumer loans are priced.
"Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs 24.00 per 1 lakh on a 30 year loan," SBI said.
It has also cut savings rate by 0.25 per cent to 2.75 per cent on all deposits.
The new rate will come into effect from April 15, 2020.
In view of adequate liquidity in the system, SBI realigned its interest rates on Savings Bank Deposits, with effect from April 15, 2020, SBI said in a statement.
The savings rate has been reduced to 2.75 per cent from 3 per cent, it said.
Last month, the SBI had reduced its lending rates by 75 basis points, passing on the entire repo rate cut made by the RBI to its customers.
The lender had also reduced interest rates on retail and bulk deposits by between 20 to 100 basis points across various tenors.
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