State Bank of India (SBI) - the country's largest lender - has reduced its key lending rates. The new marginal cost-based lending rates or MCLR will take effect from November 10, SBI said in a statement on Friday. The revision markets the seventh straight reduction in the MCLR by State Bank of India so far this financial year. Once the new rates come into force, SBI's one-year marginal cost-based lending rate will be 8 per cent, according to the company statement.
Here's all you need to know about SBI's key lending rates which will come into force on November 10:
The revision is to the tune of 5 basis points (0.05 percentage point) across all tenors, according to SBI.
Currently, the MCLR stands at 8.05 per cent for a one-year term. From November 10, the one-year lending rate will be 8 per cent.
| Tenor | Existing MCLR | Revised MCLR (with effect from November 10) |
|---|---|---|
| Overnight | 7.7% | 7.65% |
| One months | 7.7% | 7.65% |
| Three months | 7.75% | 7.7% |
| Six months | 7.9% | 7.85% |
| One year | 8.05% | 8% |
| Two years | 8.15% | 8.1% |
| Three years | 8.25% | 8.2% |
| (Source: sbi.co.in) | ||
MCLR or marginal cost-based lending rate is the interest rate at which most of State Bank of India's loans are linked.
(Also read: SBI to auction stressed assets worth Rs 700 crore this month)
SBI is the country's largest commercial bank in terms of assets, deposits, branches, customers and employees. State Bank of India commands a 35 per cent market share each in home loans and auto loans, according to its statement.
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