New Delhi: India’s largest bank State Bank of India (SBI) has reduced its marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps) across all tenors with one-year MCLR coming down from 8.45% to 8.40%, effective 10 July. One bps is one-hundredth of a percentage point. This is the third, though minor, reduction in MCLR by SBI in the current financial year.
This will benefit borrowers from SBI having MCLR-linked floating rate loans, like home loans. However, this might not reflect in savings for all home loan borrowers.