The country’s largest lender State Bank of India (SBI) today reduced its marginal cost of funds based lending rate, or MCLR, by 5 basis points across all tenors, bringing down the home loan interest rate for its borrowers. After the April monetary policy announcement by the RBI, SBI had cut the one-year MCLR by 5 basis points on 10 April. SBI had also reduced the interest rate by 10 bps on home loans up to ₹30 lakh. Or in other words, interest rates on large SBI savings account deposits and interest rate on some short-term loans will automatically change as and when RBI changes its repo rate. After back-to-back interest rate cuts by the RBI in February and April, repo rate currently stands at 6%.

Source: Mint May 10, 2019 08:57 UTC