State Bank of India (SBI) Wednesday lowered its marginal cost of funds based lending rate (MCLR) by 10-15 basis points across tenors, besides lowering savings and deposit rates.
SBI outlined how this would translate into lower monthly loan repayments for customers. “Consequently, EMIs (equated monthly instalments) on eligible home loan accounts (linked to MCLR) will get cheaper by around ₹7 per ₹1 lakh on a 30-year loan and EMIs on car loans will also be reduced by ₹5 per ₹1 lakh on a 7-year loan.”
However, the reduction will not affect retail loans disbursed after 1 October
Meanwhile, citing adequate liquidity in the system, SBI also lowered its retail term deposit rates by 10 basis points for the one year and above tenors, and 50 basis points for deposits up to 45 days.
The bank also lowered its savings bank interest rate to 3% for all customers.
Earlier, it used to pay 3.25% on balances of up to ₹1 lakh and 3% on balances above ₹1 lakh.
In another development, SBI waived maintenance of average monthly balance (AMB) for all savings bank accounts. The charges for maintaining minimum balance were waived on all 445.1 million savings bank accounts, the bank said.
Currently, SBI customers need to maintain average balance of ₹3,000, ₹2,000 and ₹1,000 in metro, semi-urban and rural areas, respectively, and non-maintenance attracts a penalty of ₹5 to ₹15, plus taxes.
