SBI also reduced interest rates on term deposits
State Bank of India (SBI), the country's largest lender, on Thursday announced a 15-basis-point (0.15 percentage-point) reduction in its lending rates across all tenors. Following the reduction, which will come into effect from May 10, the one-year MCLR or marginal cost of funds-based lending rate will come down to 7.25 per cent from the current 7.40 per cent. That marked the 12th consecutive reduction in the MCLR by the state-run lender.
EMIs on eligible home loan accounts (linked to the MCLR) will come down by nearly Rs 255 for a 30-year loan of Rs 25 lakh, SBI said in a press release.
The bank also introduced a special deposits scheme for senior citizens, called SBI Wecare Deposit. Under this scheme, an additional premium of 30 bps, or 0.30 percentage point, will be payable for senior citizens' retail term deposits with tenors of five-years and above.
Besides the lending rate, the bank also announced a 20-bps cut in the interest rates for retail term deposits with tenors of up to three years. This will be take effect from May 12.
