SBI cuts MCLR by 35 bps by April 10; less EMI on 30-year loan amount

New Delhi: The country's largest lender State Bank of India (SBI) on Tuesday (April 7) decided to cut the marginal cost of funds based lending rate (MCLR) by 35 bps across all tenors. This will implement from April 10, according to a statement. 

The one-year MCLR comes down to 7.40 per cent per annum from 7.75 per cent per with effect from April 10, 2020, it said, adding that the one-year tenor is the benchmark against which most of the consumer loans are priced.

The SBI said, "Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs 24.00 per 1 lakh on a 30-year loan." 

Earlier on March 31, the SBI offered a three-month moratorium on term loan installments to its borrowers in order to mitigate the impact of the coronavirus outbreak on businesses and individuals.  

The SBI took steps to defer equated monthly installments (EMIs) and interest on term loan falling due between March 1 to May 31 and extend the repayment period by three months. 

The interest on working capital facilities for the given period was also deferred by three months, the SBI has stated.

Notably, the country's largest lender has already cut interest rate by 75 basis points to pass on the complete rate cut benefits to its borrowers availing loans linked to external benchmark linked lending rate (EBR) and repo linked lending rate (RLLR).