New Delhi: Home Loan EMIs are set to drop as a number of state-run banks have cut the lending rates. These reductions is in the range of 5-25 basis points and will span many tenors for most banks.
The largest bank of the country SBI has cut its MLR by 5 basis points. The new MCLR for one-year loans will come down 7.85 percent from tomorrow.
Canara Bank has slashed its MCLR for loans and advances in the range of 15-25 basis points for all tenors. The new rates are with effect from 7th February, 2020. It has reduced the interest rates by 25 basis points for overnight, one month, three month and six month tenors. Canara Bank has slashed the rates by 15 basis points for one-year tenor.
The new rates for overnight and one-month loans have now become 7.65 percent. The new rate for three-month tenor have become 7.95 percent. For six-month tenor, the new rate has become 8.10 percent and for one-year tenor the new rate has become 8.20 percent.
Bank Of India has slashed the rate on home loans to 8 percent and auto loans to 8.5 percent.
Oriental Bank of Commerce cut its MCLR by 5-10 basis points. The new rates will be effective 10 February.
The one-year MCLR has been left unchanged by the bank. The one-month rates have been cut by 10 basis points and the overnight rates has been slashed by 5 basis points.
These banks have been able to cut the MCLR in spite of Reserve Bank Of India not reducing the Repo Rate and keeping it at 5.15 percent in its monetary policy review earlier last week.