Mumbai: Lending major State Bank of India (SBI) on Tuesday has announced to cut the savings account deposit rates by 25 Basis Points (BPS) and has reduced the marginal cost of funds-based lending rate (MCLR) by 35 BPS across tenors.
As per the revised rates, the existing rate of interest for savings bank account deposits with bank balance up to Rs 1 lakh as well as above Rs 1 lakh which is 3 per cent per annum will be reduced to 2.75 per cent per annum. The revised rate will be effective from April 15, 2020.
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Furthermore, SBI said that the new rates will come into effect from April 10.
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"The one year MCLR comes down to 7.40 per cent p.a from 7.75 per cent p.a. with effect from April 10, 2020. This is the eleventh consecutive cut in MCLR in FY 2019-20," it said.
"Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs. 24.00 per 1 lakh on a 30 year loan."
According to the bank, in view of adequate liquidity in the system, SBI realigned its interest rates on 'Savings Bank Deposits, with effect from April 15, 2020.
In financial parlance, MCLR is an internal reference rate that commercial banks use to determine the minimum interest rates on loans.
(With Agency Inputs)
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