The country’s largest bank SBI State Bank of India on Wednesday announced a cut in its principal loan rate MCLR. The bank has reduced the short-term MCLR by 0.10 per cent. The new rates will be applicable from Wednesday 10 July.
new Delhi. SBI (State Bank of India) has announced to reduce the interest rates of the loan while giving relief to its customers. The bank has announced a reduction in short-term MCLR rates (MCLR) from 0.05 per cent to 0.10 per cent. After this decision, the SBI rate has come down to 6.65 percent. SBI claims that currently their MCLR rates are the lowest in the country. The new rates will be applicable from 10 July. Let us tell you that in June also, SBI had decided to reduce the interest rates. On June 10, SBI’s MCLR rates had come down by 0.25 per cent to 7 per cent. Let us tell you that on May 22, the repo rate was reduced by 0.40 per cent to 4 per cent. After this, Punjab National Bank, Bank of India and UCO Bank have already reduced their loan rates related to repo and MCLR.
Repo linked lending rate based loan has been cheaper from July 1SBI has also reduced the rates of external benchmark linked lending rate (EBR) and repo linked lending rate (RLLR).
A reduction of 0.40 per cent has been implemented in both these rates from July 1. After this deduction, the annual EBR has come down from 7.05 per cent to 6.65 per cent. Similarly, RLLR has come down from 6.65 per cent to 6.25 per cent.
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the monthly installment under MCLR will be reduced by about Rs 421 on a loan of Rs 25 lakh taken for 30 years. Similarly, the monthly installment under EBR and RLLR will be reduced by Rs 660.
What is MCLR – MCLR is the rate below which a bank cannot lend. Obviously, with this reduced, now the bank will be able to offer loans at a lower rate, so that everything from house loan to vehicle loan can be cheap for you.
But this benefit will be available only to new customers as well as only those customers who have taken a loan after April 2016, because before that the minimum rate fixed for giving loan was called base rate. That is, banks could not give at a lower rate.
