Home / Industry / Banking /  SBI cuts MCLR by 35 bps across all tenors from Apr 10

India’s largest bank State Bank of India (SBI) today reduced its marginal cost of funds-based lending rate (MCLR) by 35 basis points (bps) across all tenors with one-year MCLR, effective April 10. This is the eleventh consecutive cut in MCLR in FY 2019-20.

One bps is one-hundredth of a percentage point.

The move will benefit borrowers from SBI having MCLR-linked floating rate loans, like home loans.

The one-year MCLR comes down to 7.40% per annum from 7.75% per with effect from April 10, 2020, SBI said in a statement.

"EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around 24.00 per 1 lakh on a 30 year loan," SBI said.

The country's largest lender also announced to realign its interest rates on savings bank deposits, with effect from 15 April 2020. The bank reduced the savings deposit rates by 25 bps from 3% to 2.75% for balances upto 1 lakh and 25 bps from 3% to 2.75% for balances above 1 lakh.

Last month, SBI sharply reduced the fixed deposit(FD) rates after RBI cut interest rates by 75 basis points to 4.4%. SBI had earlier announced an interest rate cut on FDs on 10th March.

The bank reduced domestic retail term deposit(TD) interest rates by 20 bps to 50 bps across tenors and bulk TD interest rates reduced by 50 bps to 100 bps across tenors.

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