SBI cuts interest rates by 35 bps across all tenors; home loans to become cheaper by Rs 24 per 1 lakh
SBI Alert: SBI said that its Marginal Cost of funds based Lending Rate (MCLR) has been slashed by 35 bps and that this will lead to a reduction in the home loan EMI by Rs 24 per Rs 1 lakh home loan.
SBI Alert: The State Bank of India (SBI) today announced yet another cut in interest rates. SBI said that its Marginal Cost of funds based Lending Rate (MCLR) has been slashed by 35 bps and that this will lead to a reduction in the home loan EMI by Rs 24 per Rs 1 lakh home loan. The largest commercial bank of India announced about the decision in a written press statement declaring 11th consecutive MCLR cut in FY 2019-20. Now, the one year MCLR has come down from 7.75 per cent to 7.40 per cent across all tenors and the new bank deposit interest rate will become applicable from 10th April 2020.
The SBI informed about the decision in a written press statement citing, "Country’s largest lender State Bank of India (SBI) has announced the reduction in its MCLR by 35 bps across all tenors. The one year MCLR comes down to 7.40 per annum from 7.75 per cent per annum with effect from April 10, 2020. This is the eleventh consecutive cut in MCLR in FY 2019-20." Elaborating upon the impact of reduction in MCLR the SBI press statement said, "Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs 24.00 per Rs 1 lakh on a 30 year loan."
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Apart from relief in EMI reduction, the SBI also made an announcement on its interest rates on Savings Bank Deposits. It said, "In view of adequate liquidity in the system, SBI realigns its interest rates on Savings Bank Deposits, with effect from 15th April 2020." It said that for balances up to Rs 1 lakh, the annual yield has been reduced by 25 bps to 3 per cent from 3.25 per cent while for savings above Rs 1 lakh, the annual interest rate has been reduced by 25 bps to 2.75 per cent from existing 3 per cent. New SBI savings bank deposit interest rates will be applicable from 15th April 2020.
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