SBI Cuts Interest Rates on Loans by 10 bps and Term Deposits by 25 bps
Moneylife Digital Team 09 September 2019
Country's largest lender State Bank of India (SBI) on Monday announced a reduction in its marginal cost-based lending rate (MCLR) by 10 basis points (bps) across all tenors. At the same time, SBI also lowered interest rates on fixed term deposits across all maturities by up to 25 basis points.
 
The one year MCLR based lending rate will come down to 8.15% after the rate cut.
 
The move is the fifth consecutive reduction in MCLR by the lender so far this financial year.
 
In view of the falling interest rate scenario and surplus liquidity, SBI says it also realigned its interest rate on term deposits (TD) from 10 September 2019. SBI has slashed retail TD rates by 20-25 bps and bulk TD rates by 10-20 bps across tenors.
 
The cut in interest rates comes on the back of the Reserve Bank of India (RBI)'s 1.1 percentage point reduction in the repo rate - the key interest rate at which it lends short-term funds to commercial banks - so far this year.
 
The new rates are effective from 10 September 2019.
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