SBI, the country's largest bank, announced the great good news for its creditors on Monday. The bank has announced a 0.25% cut in the marginal cost-based interest rate (MCLR) for all periods. With this, the bank's one-year MCLR has declined from 7.25% to 7%. The reduction in interest rates will come into effect from 10th June 2020. The bank has cut MCLR for the 13th consecutive time. The bank has also announced a 0.75% cut in the base rate. With this, the bank's base rate has come down from 8.15% to 7.40%. The deduction will also come into effect from 10th June 2020.
The bank has also announced a 0.40% reduction in the interest rate on the external benchmark linked lending rate (EBR). The bank has also announced a 0.40% reduction in the Repo Linked Lending Rate (RLLR). Thus, the bank has announced the full benefit of the 0.40% cut in the repo rate by the Reserve Bank to its customers. After this cut, the bank's EBR has declined from 7.05% to 6.65%. The change will come into effect from July 2020. RLLR has declined from 6.65% to 6.25%. The reduction in interest rate will come into effect from June 2020.
The burden of EMI will be reduced so much:
With this cut in interest rates by the bank, the EMI burden of the people will come down significantly. The bank has said that the EMI on MCLR based home loan of Rs 25 lakh for a period of 30 years will be reduced by Rs 421. That's where EBR/RLLR based home loan of the same amount of the same period will reduce the EMI by Rs 660.
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