SBI Reduces Lending Rate By 0.15%, Introduces Special Deposits For Senior Citizens

State Bank of India

State Bank of India (SBI), today announced a 15-basis-point (0.15 percentage-point) reduction in its lending rates across all tenors. The reduction will come into effect from May 10 making the one-year marginal cost of funds-based lending rate or MCLR come down to 7.25 percent from the current 7.40 percent. That marked the 12th consecutive reduction in the MCLR by the country’s largest lender.

Alongside, to safeguard the interests of senior citizens in the current falling rate regime, the bank also introduced a new product ‘SBI Wecare Deposit’ for them in the retail term deposit segment. Under this new product, an additional 30 basis points premium will be payable for senior citizen’s retail term deposits with “5 Years & above” tenor only. This scheme would be in effect up to September 30, the bank said.

The announcement marked the 12th consecutive reduction in the MCLR by SBI. EMIs on eligible home loan accounts (linked to the MCLR) will come down by nearly Rs 255 for a 30-year loan of Rs 25 lakh, the bank said in a press release.

Besides the lending rate, the bank also announced a 20-bps cut in the interest rates for retail term deposits with tenors of up to three years. This will take effect from May 12.

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