New Delhi: The State Bank of India (SBI) on Monday announced a cut in marginal cost of funds-based lending (MCLR) rate by 10 bps across all tenors. The latest revision will come into effect from December 10, Tuesday.
Following today’s rate cut all SBI loans including home, car and other retail loans linked to MCLR will become cheaper. This is the eighth consecutive cut in MCLR by SBI this fiscal.
Notably, this is the eighth consecutive cut in MCLR by SBI in this fiscal. SBI said it continues to remain the “cheapest loan provider in the country” and that the latest rate cut is meant to “pass on the benefit of its reducing cost of funds to the customers.” The bank also asserted that it commands 25% market share each in home loans and auto loans.
Earlier last month, the SBI had reduced its marginal cost of fund based lending rate by 5 basis points across all tenors, and sharply slashed the deposits pricing between 15 and 75 basis points.
The bank had also revised its interest rates on term deposits on account of adequate liquidity in the system. It had reduced interest rate on retail term deposit by 15 basis points for one year to less than two years’ tenor.
Bulk term deposit interest rates had been reduced by 30 to 75 bps across tenors, the bank had stated on November 8.
(With agency inputs)