New Delhi: Country’s largest bank SBI has made home and other loans cheaper as it has announced a 5 basis points reduction in its marginal cost of funds based lending rate (MCLR).
The one-year MCLR will come down to 7.85 percent per annum from 7.90 percent per annum as the rates would be effective from 10 February.
This reduction is the ninth consecutive cut in MCLR by the bank in the current fiscal. The announcement comes soon after yesterday’s decision of the Reserve Bank of India to keep the Repo Rate unchanged at 5.15 percent.
The bank has also cut its fixed deposit rates with effect from 10 February.
The interest rates for home loans are likely to go down as “the impact of recent RBI policy measures and reduction in deposit rates will be reflected in the next review of MCLR,” the bank said in a statement.