Mumbai: Country’s largest lender State Bank of India (SBI) has reduced its MCLR by 5 bps across all tenors with 1 Year MCLR coming down from 8.55% p.a. to 8.50% p.a. As a result, Interest rates on all loans linked to MCLR stand reduced by 5 bps with effect from 10th April 2019.

Also SBI makes its housing loans more affordable by reducing the interest rate by 10 bps on loans up to Rs. 30 lacs. Now the applicable interest rate for such Housing loans below Rs.30 lacs will range from 8.60% p.a. to 8.90% p.a. (from existing rates of 8.70% p.a. to 9.00% p.a.)

With SBI having linked its CC/OD rates above Rs. 1 lac to the repo rate for better transmission of RBI’s policy rates, the benefit of reduction in repo rate by 25 bps by RBI w.e.f. 4th April 2019 will get passed on in its entirety to such CC/OD customers banking with SBI w.e.f 1st May 2019.

Since SBI also having linked its SB rates to the repo rate, the saving bank rates shall also stand revised as under w.e.f 1st May 2019:

Ø For balances up to Rs. 1.00 lac; 3.50 % p.a.

(Comprising almost 95% of SB account holders)

Ø For balances above Rs. 1.00 lac; 275 bps below repo rate i.e. effective rate being 3.25% p.a.