State Bank of India (SBI), country’s largest lender, on Wednesday, said it has reduced its marginal cost of funds based lending rate (MCLR) by 5-10 basis points (bps) for shorter tenors. These new rates will come into effect from July 10.
This is the 14th consecutive reduction in the bank’s MCLR, which continues to be the lowest in the market.
As per a statement released by the bank, this reduction in MCLR for shorter tenors-up to three months-is aimed to boost credit off take and revive demand.
With this revision, the bank’s three months MCLR rate has been revised to 6.65 per cent from 6.75 per cent, which is at par with its external benchmark based lending rate (EBLR), SBI said in a release.
Any reduction in the MCLR results in some amount of fall in the EMI or tenure of the loan and home loans also become less costlier. However, this impact is not immediate.
Following are tenor-wise MCLR which will come into effect from Friday.