It’s a celebration time for all the people who dream of the affordable home loan as SBI’s marginal cost of one year fund based lending rate reduces to 8.40%.
SBI has been known for its innovative banking solutions, and now it has brought the dream of a home closer to the people by lowering its a lending rate across all tenors by five basis points.
This will come into effect from today. The fund-based lending rate now becomes 8.40% with this one-year marginal cost reduction.
Earlier it was 8.54 percent per annum, and now it has been slashed down to 8.40 percent per annum. With this cut in MCLR car, home and other retain loan will become cheaper.
This rate cut is the third one in the current financial year, and with this recent MCLR cut the home loan reduction rate since April 2019 has become 20 basis points. SBI has also introduced from 1st July repo-rate linked products for a home loan.
Since August 2016, all the new floating rate for a home loan were linked directly to the marginal cost that was required for fund-based lending rate. But now there will be a direct impact whenever repo rate changes in case of home loan that is repo rate linked.
After the repo rate cut in the June policy of RBI top lenders like HDFC Bank, ICICI Bank, and Axis Bank have revised their rate of interest on the fixed deposit, Corporation Bank, IDBI, Oriental Bank and Bank of Maharashtra, on the other hand, reduced the MCLR by 5-10 bps.
This good news came just a day after the governor of Reserve Bank of India Shaktikanta Das said that he expects faster transmission of the three successive repo rate cut.
The monetary policy committee will have its next meeting on August 5-9, where the analysts are expecting more relief for the customers through another rate cut.