Ahead of Diwali festival, the State Bank of India has lowered its Marginal Cost of Funds based Lending Rate (MCLR) by 10 basis points across all tenors to 8.05% p.a., effective from 10th October. In wake of change in floating rate regime to External Benchmark Rates from Oct 1, only the existing Home Loan borrowers on MCLR based loans will benefit from the move.
This is the sixth lending rate cut in MCLR in FY 2019-20 by the lending major. The decision is followed by Reserve Bank of India’s latest repo rate cut by 25 basis points on Oct 4. The repo rate currently stands at 5.15%.
The bank statement said: In view of the festival season and extending benefit to customers across all segments, SBI has reduced its MCLR by 10 bps across all tenors.