State Bank of India, the country’s largest state-run bank, has given a big gift to its customers. SBI has announced to reduce the loan interest rates. Short-term MCLR rates have come down by 0.05 percent to 0.10 percent. Now the SBI rate has come down to 6.65 percent. The bank claims that its MCLR rates are currently the lowest in the country. These new rates will be applicable from 10 July.
Now the monthly installment under the MCLR on a loan of Rs 25 lakh taken for 30 years to customers will be reduced by about Rs 421. Similarly, the monthly installment under EBR and RLLR will be reduced by Rs 660, but this benefit will be available only to new customers as well as those who have taken loans after April 2016. Because the minimum rate fixed for lending before that was called base rate. That is, banks could not give less than this.
The statement issued by SBI said that this deduction in MCLR will be applicable on the loan for up to three months. Its purpose is to boost debt offtake and demand. After this reduction in MCLR, the interest rate of the bank on the loan for a period of three months will come down to 6.65 percent per annum. This rate is equal to the bank’s external benchmark based interest rate (EBLR).
Before this, on June 10, SBI’s MCLR rates were reduced by 0.25 percent to 7 percent. On May 22, the repo rate was reduced by 0.40 percent to 4 percent. After this, Punjab National Bank, Bank of India and UCO Bank have already reduced their loan rates related to repo and MCLR.
SBI has also reduced the rates of external benchmark linked lending rate (EBR) and repo linked lending rate (RLLR). A reduction of 0.40 percent has been introduced in both the rates from July 1. Now the annual EBR has come down from 7.05 percent to 6.65 percent. RLLR has come down from 6.65 percent to 6.25 percent.