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There is good news for people who are planning to take a loan during the festive season . The country's largest bank, State Bank of India (SBI) has announced a reduction in interest rates for a limited period. The bank has announced a reduction in MCLR for those taking loans from October 15 to November 15. SBI has reduced the MCLR interest rate by 25 basis points (BPS) on taking loans during this period, while other rates have not been changed. The new rates have come into effect from today.
Know where the interest rates were cut
The MCLR-based rates have been adjusted to a range of 8.20% to 9.1%. The overnight MCLR stands at 8.20%, while the one-month rate has been reduced from 8.45% to 8.20%, a drop of 25 bps. The six-month MCLR has been set at 8.85%. The one-year MCLR has been revised to 8.95%. The two-year MCLR stands at 9.05% and the three-year MCLR at 9.1%.
What is MCLR?
The rate at which the bank lends is known as the Marginal Cost of Funds-based Lending Rate (MCLR). SBI home loan external benchmark lending rate (EBLR) is 9.15%. RBI repo rate is 6.50+ spread (2.65%). Interest rates on home loans can vary between 8.50% to 9.65% depending on the CIBIL score of the borrower.
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