The country’s biggest lender State Bank of India(SBI) on Wednesday announced a cut in the MCLR by 5-10 basis points for loans up to 3 months. Now, the Bank’s MCLR is down to 6.65% for loans up to 3 months.
This is the 14th consecutive reduction in MCLR made by the State Bank of India. The MCLR rates of the bank are the lowest in the market and are currently at par with External Benchmark-Based Lending Rate(EBLR).
However, This is not going to have an impact on SBI Home loans as they are long term loans and they are linked to one-year MCLR. On June 10, 2020, there was a reduction in the One-year MCLR by 25 basis points to 7%, and the latest SBI home loan borrowers in July will get the benefit of the reduction in the rate.