Good news for account holders of State Bank of India (SBI) as interest rates on home, auto and other loans across all tenors has become cheaper. The SBI has lowered the marginal cost of fund-based lending rate (MCLR) to 8.50% for the one-year tenor, down from 8.55%.
A day after the RBI cut its repo rate by 25 basis points to 6%, the SBI has decided to cut the benchmark lending rates.
SBI consumers taking overdraft or short-term loans will have the last laugh as the interest rate will be cut by 25 basis points. The SBI has announced to link savings bank accounts with deposits above Rs 1 lakh and short term loans to the RBI's repo rate from May 1. The move will also ensure an immediate transmission of changes to the savings account.
Apart from this, consumers having saving account above Rs 1 lakh balance will get interest rate of 3.25% from May 1.