The country’s largest lender, State Bank of India (SBI) on April 9 cut its marginal cost-based lending rates (MCLR) by five basis points (bps) (100 bps=1 percentage point) across tenors effective April 10.
To make its housing loans more affordable the bank has reduced the interest rate by 10 bps on loans up to Rs 30 lakh. The applicable interest rate for such housing loans below Rs 30 lakh will range from 8.60 percent to 8.9 percent per annum.
SBI’s overnight and one-month MCLR has been reduced from 8.2 percent to 8.15 percent, three-month rate from 8.25 percent to 8.2 percent, six-month rate from 8.4 percent to 8.35 percent and one-year rate from 8.55 percent to 8.5 percent. The two-year MCLR has been cut from 8.65 percent to 8.6 percent and three-year rate from 8.75 percent to 8.7 percent.
On April 8, HDFC Bank reduced its MCLR by 5-10 basis points across tenors. Its one-year MCLR stands at 8.7 percent.