Good News! SBI Introduces New Interest Rates On Loans Effective Today

Mumbai/Bhubaneswar: State Bank of India (SBI), India’s largest lender, is introducing some changes from May 1 which will definitely benefit its customers.

As the State-owned bank has linked loan and deposit rates to the repo rate of the Reserve Bank of India, customers will be able to get loans at cheaper rates from May 1, 2019.

For deposits more than Rs 1 lakh, the bank will offer 3.25% interest rate to savings account holders as compared to an interest rate of 3.50% per annum deposits for balances less than Rs 1 lakh.

Generally, most of the banks link loan interest rates to the Marginal Cost of Fund Base Lending Rate (MCLR). However, the SBI has decided to link repo rate to loan interest. It is expected that the loan rates will be cheaper for the customers.

SBI has cut its interest rate by 10 basis points on home loans of up to Rs 30 lakh. The interest rate on home loans below Rs 30 lakh is currently in the range of 8.60 to 8.90 percent.