The country's largest lender State Bank of India (SBI) on Wednesday announced a reduction in its marginal cost of funds-based lending rate (MCLR) by 10 to 15 basis points across all tenors.
The one-year MCLR comes down to 7.75 per cent per annum from 7.85 per cent with effect from March 10. This is the 10th consecutive cut in MCLR during FY 2019-20. Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs 7 per one lakh on a 30-year loan. EMIs on car loans will also be reduced by Rs 5 per one lakh on a 7-year loan.
In view of adequate liquidity in the system, SBI has also realigned its interest rates on term deposits.
Retail term deposit interest rates will be reduced by 10 basis points for one year and above tenor and 50 basis points for deposits up to 45 days.
Bulk term deposit interest rates stand reduced by 15 basis points for deposits in 180 days and above tenors.