New Delhi. The country’s largest lender State Bank of India (SBI) has announced a reduction in interest rates, giving relief to the customers. SBI has decided on 14 September 2021 that the base rates will be cut by 5 basis points i.e. 0.05 percent. After this the new interest rates will be 7.45 percent. At the same time, the bank has said that the lending rate (PLR) will also be reduced by 5 basis points to 12.20 percent. The new rates will be applicable from 15 September 2021 i.e. tomorrow.
Now you will have to pay less loan EMI
This decision of SBI will have a direct impact on the pocket of the common man. With this, SBI customers will now have to pay less monthly installments of various types of loans including home loan, auto loan, personal loan. Please note that all home loans taken after July 2010 are linked to the base rate. In this case, banks are free to calculate the cost of funds on the basis of average fund cost or MCLR. Earlier last week, private sector Kotak Mahindra Bank announced a cut in the interest rate of home loans. Kotak Mahindra Bank has cut 0.15 percent. After the deduction, the interest rate of home loan has come down to 6.50 percent.
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SBI had cut MCLR in June
State Bank of India had also cut rates in June 2021. Then SBI had cut MCLR by 0.25 percent. After this, the MCLR of SBI has come down to 7.00 percent for one year. Earlier this rate was 7.25 per cent for one year. The new rates have come into effect from 10 June 2020. Apart from this, the bank had also cut the base rate. After this the new rate was reduced to 7.40 percent. The bank gave the full benefit of the 0.40 percent reduction in the repo rate to the borrowers. This benefit is available to those customers who have taken a loan on the basis of External Benchmark Linked Lending Rate (EBR). Similarly, those taking loans on Repo Linked Lending Rate (RLLR) also got the benefit.
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