SBI cuts lending rates, home loans to get cheaper

State Bank of India, the country’s largest lender by assets, on Tuesday cut its benchmark lending rates by five basis points across all tenors.

The nation’s largest lender State Bank of India Tuesday reduced the lending rates by a marginal 5 basis points across all tenors, effective April 10.

The move comes days after the Reserve Bank of India cut its policy interest rate by 25 basis points, in a widely expected move to boost the economy. (Mint file photo)

The revised one-year marginal cost of funds-based lending rate (MCLR) stands at 8.50 percent down from 8.55 percent earlier, the bank said in a statement.

The lender has also cut interest rates on housing loans up to Rs 30 lakh by 10 bps. Accordingly, the interest rate on housing loans below Rs 30 lakh will be in the range of 8.60-8.90 percent, from 8.70-9 percent earlier.

The move follows a 25 basis points cut in repo rate by the Reserve Bank in its first monetary policy review announced last week. In the February policy review also the monetary authority had lowered the key rates by a similar quantum.

In a 4:2 majority vote, the central bank had cut the repo rate to 6 percent from 6.25 percent earleir, citing the need to support growth that has been sluggish since many months.