SBI cuts interest rates on home loans up to Rs 30 lakh by 10 basis points

MUMBAI: The nation's largest lender State Bank of India on Tuesday reduced the lending rates by a marginal 5 basis points across all tenors, effective April 10.

The revised one-year marginal cost of funds-based lending rate (MCLR) stands at 8.50 per cent down from 8.55 per cent earlier, the bank said in a statement.

The lender has also cut interest rates on housing loans up to Rs 30 lakh by 10 bps. Accordingly, the interest rate on housing loans below Rs 30 lakh will be in the range of 8.60-8.90 per cent, from 8.70-9 per cent earlier.

The move follows a 25 basis points cut in repo rate by the Reserve Bank of India (RBI) in its first monetary policy review announced last week. In the February policy review also the monetary authority had lowered the key rates by a similar quantum.

In a 4:2 majority vote, the central bank had cut the repo rate to 6 per cent from 6.25 per cent earleir, citing the need to support growth that has been sluggish since many months.