State Bank of India (SBI), the country’s largest lender, has reduced its key lending rate by 5 basis points (bps) across all tenors effective from today.
The one-year marginal cost of funds based lending rate (MCLR) will fall to 8.4 percent per annum from 8.45 percent, the bank said in a statement on Tuesday. As a result, interest rates on all loans linked to MCLR stand reduced by 5 bps with effect from July 10, 2019, it said.
MCLR is the minimum interest rate, below which a bank is not permitted to lend.
One basis point is a hundredth of a percentage point.
SBI said this is the third rate cut in the current financial year. With the latest MCLR cut, the reduction in home loan rates since April 10, 2019 is 20 bps, it added.
First Published: Jul 9, 2019 8:59 PM IST
