This is the sixth time that the country's largest lender has cut its MCLR or minimum lending rate in the current financial year. The rate reduction is not applicable to the repo-linked loans.
In related news, India's largest bank has cut interest rates on fixed deposits, a second in one month, by 10 basis points (100 bps=1 percentage point) on select maturities.
For FDs maturing in seven days up to 45 days and 46 days up to 179 days, the interest rate has been left unchanged at 4.5 percent and 5.5 percent, respectively. Those maturing in 180 days up to 210 days and 211 days to less than ayear will continue to earn 5.8 percent.
Interest rate on deposits maturing in one year but less than two years will now fetch you 6.40 percent. Those maturing in two years up to 10 years, will now earn 6.25 percent.
SBI had earlier revised interest rates on fixed deposits on September 10.
"In view of the festival season and extending the benefits to customers across all segments, we have reduced our MCLR by 10 bps across all tenors," the bank said in a statement.
With this reduction, the one year MCLR, to which all the lending rates are linked to, is set at 8.05 percent as against 8.15 percent earlier.The cut in MCLR follows a 25 bps reduction in repo rate by the RBI last week.The Great Diwali Discount!
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