Home loans to get cheaper as SBI cuts MCLR by 25 bps

Home loans to get cheaper as SBI cuts MCLR by 25 bps

SBI said that it has passed on the entire 40 bps repo rate cut announced by Reserve Bank of India on May 22

State Bank of India (SBI) has reduced its Marginal Cost of Funds Based Lending Rates (MCLR) by 25 basis points across tenors. This is the thirteenth consecutive reduction in MCLR by the state-run lender. The revised lending rates will come into effect on June 10

With the latest revision, the MCLR for overnight and one month tenors is now 6.70 per cent. The three-month MCLR is 6.70 per cent, whereas six-month MCLR is 6.95 per cent. The revised MCLR for one year is 7 per cent, for two years is 7.20 per cent and for three years is 7.30 per cent.

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SBI has also slashed its External Benchmark-linked lending Rate (EBR) and as well as Repo Linked Lending Rate (RLLR) by 40 bps. EBR has been reduced to 6.65 per cent per annum from 7.05 per cent. RLLR has been brought down to 6.25 per cent from 6.65 per cent. Both these rates will come into effect from June 1. SBI said that it has passed on the entire 40bps repo rate cut announced by Reserve Bank of India on May 22.

"EMIs on eligible home loan accounts linked to MCLR will get cheaper by approximately Rs 421 and those linked to EBR/RLLR by around Rs 660 for a 30-year loan of Rs 25 lakh," said SBI.