SBI interest rate cut again! After Diwali 2019 gift, this is what you will pay for loans
SBI Diwali 2019 gift: After launching an EMI facility for its debit cardholders, the State Bank of India or SBI has now reduced the Marginal Cost of Funds-based Lending Rate (MCLR) by 10 bps. This is for the sixth time that SBI has cut its retail loan interest rates in FY20. Now, the MCLR comes down from 8.15 per cent to 8.05 per cent, which means ahead of the Diwali 2019, all retail SBI loans are going to become cheaper by 10 bps that would lead to lowering in the EMI of the SBI customers. The decision will become effective from 10th October 2019.
The SBi informed about the decision in written press statement citing, “In view of the festival season and extending benefit to customers across all segments, SBI has reduced its MCLR (6th consecutive rate cut in FY’19-20) by 10 bps across all tenors. The one-year MCLR comes down to 8.05% p.a from 8.15% p.a. with effect from 10th October 2019.”
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MCLR or Marginal Cost of Funds based Lending Rate is a methodology by the Reserve Bank of India (RBI) – India’s apex bank which is also known as the central bank of India – for setting the lending rate on loans by commercial banks. MCLR is built on four components – the marginal cost of funds, tenor premium, operating expenses and Cash Reserve Ratio (CRR).
Recently on October 7, the SBI launched the ‘Debit Card EMI facility’ for its existing customers. Under this service, consumers can opt for an EMI tenure of minimum 6 months to 18 months during SBI card bill payment. They can buy the products at 40000+ merchants and stores in 1500+ cities having Pine Labs branded POS machines totaling more than 4.5 lakhs.