SBI SLASHES KEY LENDING RATE BY 15 BASIS POINTS

MUMBAI: India’s largest lender State Bank of India (SBI) on Thursday announced a reduction in its marginal cost of fundsbased lending rate (MCLR) by 15 basis points across all tenors. The one-year MCLR will come down from 7.4% per annum to 7.25% with effect from May 10. This is the 12th consecutive reduction in the bank’s MCLR. MCLR is based on the bank’s own cost of funds. Following the reduction, equated monthly installment (EMIs) on home loan accounts linked to MCLR will get cheaper by ₹255 for a 30-year loan of ₹25 lakh, SBI said. However, the latest cut may not bring down the EMIs immediately, as MCLR-based loans have a one-year reset clause. SBI also cut its interest rate on fixed deposits.