State Bank of India (SBI), the country's largest lender, on Wednesday announced a 15 basis point (bps) cut in its marginal cost of fund based lending rate (MCLR) across all tenors soon after the RBI cut its repo rate by 35 bps on Wednesday.
With the fourth consecutive rate cut by the RBI in the current fiscal, the one-year MCLR would come down to 8.25% per annum from 8.40% per annum with effect from August 10, 2019, while the MCLR for three years would come down to 8.45% per annum, 8.35% for two year, 8.10% for six month, 7.95% for three month and 7.90% for one month and overnight lending. With this MCLR cut, home loans would become cheaper by 35 bps since April 10, 2019. In addition, SBI is offering a Repo Linked Home Loan Product from July 1, 2019.
With the recent cut in the policy rate, SBI's effective Repo Linked Lending Rate (RLLR) for cash credit (CC) and overdraft (OD) customers will stand revised to 7.65% effective from September 01, 2019. SBI has effected full transmission of repo rate cuts by RBI and has passed on the benefit of repo rate reduction by 85 bps during the current financial year to its CC/OD customers with limits above `1 lakh. Till now, the RBI has cut the repo rate by 110 bps to 5.40% in 2019.