New Delhi: Worried about paying your home loan EMI after all the pay cut? If you’re an SBI customer, there’s some good news for you. The State Bank of India (SBI) on Tuesday announced a reduction in its MCLR by 35 bps across all tenors. This means that people who have home loans or floating rate loans linked with MCLR will have to pay their EMIs at a cheaper rate. Also Read - Mega Bank Mergers Working Smoothly Amid COVID-19: AIBEA

The MCLR has been reduced in line with the RBI’s repo rate cut to tackle the economic recession due to coronavirus pandemic. Also Read - Act of Kindness: Mizoram Man Anonymously Clears Loans Of 4 Strangers, Pays Rs 10 Lakh to the Bank

The one-year MCLR comes down to 7.40 per cent per annum from 7.75 per cent per with effect from April 10, 2020, the country’s largest lender said in a statement. This is SBI’s 11th consecutive cut in MCLR in this financial year. Also Read - Yes Bank Gets New Board, Decides to Raise Additional Rs 5,000 Crore

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.

Notably, the state-run bank had reduced its lending rates by 75 bps last month after RBI’s rate cut. Moreover, the SBI has also announced that it will reassess the interest rates on saving bank deposits from April 15, this year.