SBI has cut its marginal cost of fund-based lending rate (MCLR) by 15% which will make home loans cheaper. It has reduced its MCLR by 10 points and it is the 10th consecutive cut in the rate of MCLR.
Latest slash will not bring EMI’s down as the MCLR loans have a one year reset clause. SBI’s one month, two month and one-year and two-year MCLR has been slashed.
SBI has also slashed its FD rates. Another lender Union Bank of India has slashed its MCLR rate by 10%.