State Bank of India has lowered its lending rate for home loans to 9.45% and further to 9.4% for women customers following implementation of a new interest rate calculation regime mandated by RBI.
The lending rates of other banks may also fall soon with the Marginal Cost of Funds based Lending Rate (MCLR) system coming into force with effect from April 1.
If the banks decide to pass on the latest 0.25% policy rate cut announced by RBI on April 5, the rates for borrowers may go down further.
SBI in a statement said that it has fixed its home loan interest rate at 9.45%, which is 0.25 percentage point more than its one-year marginal cost of fund-based lending rate of 9.20%.
However, women borrower would get the loan 0.20% above the MCLR at 9.40%, it said.
The new rate is applicable from April 1, it said.
As per the information available on SBI website, the earlier home loan rate 9.5% for women borrowers and 9.55% for others.
Similarly, car loan would be available at 0.60% above 1 year MCLR. Thus, it would be 9.80%, the statement said.
Student loans of up to Rs 7 lakh would be available at 2% above MCLR, currently 11.20% while 1.70% above MCLR at 10.90%.
While SBI Skill loan will be available 3.90% above MCLR at 13.10%. Besides, other loans like personal loan, loan against securities etc have also been linked to MCLR.
The base rate or the minimum lending rate of the bank is 9.3%.
RBI had asked banks to price fixed-rate loans of up to three years based on their marginal cost of funds from April 1. All banks have to follow MCLR system, a new uniform methodology which will ensure fair interest rates to borrowers as well as to banks.