Home loans from SBI to get cheaper as bank cuts MCLR by 15 bps

India's largest bank State Bank of India (SBI) today reduced its Marginal Cost of funds based Lending Rate (MCLR) by 15 basis points (bps) across all tenors.

With this move, the benchmark lending rate will come down to 7.25 per cent per annum from 7.40 per cent per annum with effect from May 10. This is the twelfth consecutive reduction in the MCLR, the public sector banking behemoth said in a statement.

"Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by approx. Rs 255.00 for a 30 year loan of Rs. 25 lakh," the statement said.

The move will benefit those customers of SBI who have their loans linked to its MCLR – which changes each time the bank makes changes in its benchmark rate.

Apart from the lending rate, SBI also slashed its interest rates on retail term deposits by 20 bps for 'up to 3 years' tenor, effective from May 12 in view of adequate liquidity in the system as well as with the bank.

For its senior citizen customers, SBI has introduced a special deposit scheme with a higher interest rate. Dubbed as 'SBI Wecare Deposit', the bank said the new product will safeguard the interests of senior citizens in the current falling rate regime.

Under this new product, an additional 30 bps premium will be payable for Senior Citizen's Retail term deposits with '5 Years & above' tenor only, the bank statement read. This new scheme would be in effect up to September 30.

(INputs and image from theindianexpress.com)