SBI decreases the Key lending rates: Home loans get cheaper
On Wednesday, the country's biggest asset lender SBI (State Bank of India), announced a decrease of 15 basis points across all tenors in its benchmark lending rates. One basis point is equivalent to 0.01%.
SBI said in a declaration that for the one-year interval, the marginal price of the fund-based loan rate, or the MCLR, will now be 8.25%, down from 8.40%, with impact from August 10, 2019. , SBI observed that this is the fourth successive rate reduction of SBI in the present financial year. With this MCLR cut, 35 basis points will be reduced in home credit rates since April 10.
The growth comes after the Monetary Policy Committee (MPC) of Reserve Bank of India provided its fourth reduction in repo rate in a row. The MPC reduced the repo rate which is the main interest rate at which it lends commercial banks short-term funds.
The decrease is the lowest in over nine years, by 35 basis points or 0.35 percentage point to 5.40 per cent. Bank of Maharashtra, Corporation Bank, Oriental Bank and IDBI Bank also reduced their MCLR rate from 0.05 to 0.10 per cent after the repo rate was cut by 0.25 per cent after reviewing of monetary policy in June.
Shri Das said that they are collecting the information and we must also bear in mind that the scheme had more than appropriate liquidity surplus as of June.
The next meeting of the Monetary Policy Committee will be held from August 5 to 9.