State Bank of India cuts home loan rates twice this month, MCLR reduced by 5 bps; EMIs set to fall

State Bank of India (SBI), the country’s largest lender reduced its MCLR by 5 bps across all tenors with 1 Year MCLR coming down from 8.50 percent per annum to 8.45 percent per annum. As a result, interest rates on all loans linked to MCLR stand reduced by 5 bps with effect from 10 May 2019. This is the second rate cut in one month. After the April Monetary Policy the MCLR was reduced by 5 bps. [caption id=“attachment_5204511” align=“alignleft” width=“380”]  Representational image. Reuters[/caption] With today’s MCLR cut, the reduction in the Home Loan Rates since 10 April, 2019 till date is 15 bps. With SBI having linked its CC/OD rates above Rs 1 lakh to the repo rate for better transmission of RBI’s policy rates, the benefit of reduction in repo rate by 25 bps by RBI with effect from 4 April, 2019 will get passed on in its entirety to such CC/OD customers banking with SBI with effect from 1 May 2019, a statement from SBI said.