SBI reduces Home Loans and MCLR by 5bps

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With today’s MCLR cut, the reduction in the Home Loan Rates since April 10th 2019 till date is 15 bps.

Country’s largest lender State Bank of India (SBI) has reduced its MCLR by 5 bps across all tenors with 1 Year MCLR coming down from 8.50% p.a. to 8.45% p.a. As a result, Interest rates on all loans linked to MCLR stand reduced by 5 bps with effect from 10th May 2019. This is the second rate cut in one month. After the April Monetary Policy the MCLR was reduced by 5 bps.

Highlights:

  • Rate cute effective 10th May 2019 across all the tenors
  • 2nd rate cut affair 10th April,2019 monetary policy
  • In one month home loan rates has been reduced by 15 BPS
  • Interest rates on cash credit/over draft limits above INR 1 lakh have also come down by 25 BPS W.E.F 1st May 2019,consequent to the repo rate cut of 25BPS on 4th April 2019

With today’s MCLR cut, the reduction in the Home Loan Rates since April 10th 2019 till date is 15 bps.

With SBI having linked its CC/OD rates above INR 1 lac to the repo rate for better transmission of RBI’s policy rates, the benefit of reduction in repo rate by 25 bps by RBI w.e.f. 4th April 2019 will get passed on in its entirety to such CC/OD customers banking with SBI w.e.f 1st May 2019.