State Bank of India (SBI) on Wednesday announced reduction in its marginal cost of fund based lending (MCLR) rate by 10 basis points across all tenors, effective October 10.
This is the sixth time that the countrys largest lender has cut its MCLR or minimum lending rate in the current financial year. The rate reduction is not applicable to the repo-linked loans.
In view of the festival season and extending the benefits to customers across all segments, we have reduced our MCLR by 10 bps across all tenors, the bank said in a statement.
With this reduction, the one year MCLR, to which all the lending rates are linked to, is set at 8.05% as against 8.15% earlier.
The cut in MCLR follows a 25 bps reduction in repo rate by the RBI last week.
The bank also cut interest rate on savings deposits, with a balance of upto 1 lakh, by 25 bps to 3.2%from November 1, and slashed retail & bulk term deposit interest rates by 10 and 30 bps respectively for 1 year to less than 2year tenure from October 10.