State Bank Of India Cuts Key Interest Rate For Loans Up To 3 Months
State Bank of India on Wednesday announced a reduction in key lending rates for short-term loans, in a bid to boosts credit off-take and revive demand. The countrys largest bank by assets said its MCLR or Marginal Cost-based Lending Rate will stand reduced by 5-10 basis points to 6.65 per cent for shorter tenors from July 10. That marked the fourteenth consecutive reduction in its MCLR, according to State Bank of India. The cut in the state-run banks key lending rate will be applicable to loans for a term up to three months, and will have no impact on loans of longer tenures.
State Bank of India asserted that its MCLR continues to be at the lowest level in the market.The reduction in the three-month Marginal Cost-based Lending Rate to 6.65 per cent is in line with SBIs External Benchmark-based Lending Rate.
State Bank of India maintains its EBLR at 265 basis points - or 2.65 percentage points - above the repo rate, which is the key interest rate at which the Reserve Bank of India lends short-term funds to commercial banks.
