BackSBI changes MCLR-linked loan's reset frequency to 6 months
If your floating rate home loan is linked to MCLR or marginal cost of funds based lending rate, you will have a reset clause and from that date the new rates will become applicable.
PremiumIndia's biggest bank State Bank of India or SBI has adopted 6-month MCLR reset frequency for retail loans as compared to earlier frequency of one year. "Enjoy the benefits of a reduction in the interest rate without waiting for a year. SBI has reduced the MCLR reset frequency from 1 year to 6 months," SBI tweeted.
A customer care executive of SBI said that the new reset frequency of 6 months will be applicable for new loans.
Currently, the one-year MCLR of SBI, against which home loans are typically benchmarked, stands at 7% while six-month at 6.95%. In July, SBI has announced a cut in its short-term MCLR rates to boost credit off take and revive demand.
If your floating rate home loan is linked to MCLR or marginal cost of funds based lending rate, you will have a reset clause and from that date the new rates will become applicable.
Banks have been cutting their lending rates, citing adequate liquidity.
State Bank of India (SBI) is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country. As on March 31, 2020, the bank has a deposit base of over Rs. 32 lakh crore. SBI claims that it commands nearly 34% market share in home loans and 33% in the auto loans segment.
The Bank has the largest network of over 22,000 branches in India with an ATM / CDM network of over 58,000.
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