Categories: Business

Good news for SBI customers, MCLR rate on short-term loan reduced by 0.05- 0.10 percent

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SBI cuts MCLR by 5-10 bps for shorter tenors

new Delhi. The country's largest bank State Bank of India (SBI) on Wednesday said it has cut the fund's marginal cost-based interest rate (MCLR) on short-term debt from 0.05 to 0.10 percent. This deduction will be applicable from 10 July. The statement issued by SBI said that this reduction in MCLR will be applicable on the loan for up to three months. Its purpose is to boost debt offtake and demand.

After this reduction in MCLR, the interest rate of the bank on the loan for a period of three months will come down to 6.65 percent per annum. This rate is equal to the bank's external benchmark based interest rate (EBLR). This is the 14th consecutive reduction in State Bank's MCLR rate. Even after this cut, this rate is the lowest in the market.

HDFC Bank cuts MCLR by 0.20% for all periods

HDFC Bank, the country's largest private bank, on Tuesday announced a 20 basis point or 0.20 percent reduction in the Fund's marginal cost-based interest rate (MCLR) for all its term loans. The new rates have come into effect from July 7, 2020. Last month too, HDFC Bank cut MCLR rates by 5 basis points.

After the new deduction, the overnight MCLR has come down to 7.10 percent, MCLR to 7.15 percent for one month and 7.45 percent to MCLR on loan for one year. The MCLR is 7.65 percent for three years.

This post was published on July 8, 2020 12:35 pm

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