New Delhi: Hours after the Reserve Bank of India (RBI) cut the benchmark lending rates, India's largest lender State Bank of India (SBI) announced reduction in its home loan interest rates across all tenors.
SBI said that marginal cost of fund based lending rate (MCLR) will be reduced by 15 basis points across all tenors. The revised rates will be effective from August 10. The Bank said that the one year MCLR would come down to 8.25 percent per annum from 8.40 percent effective August 10.
It is expected that other banks may follow suit and give relief for home buyers by announcing reduction in loan rates.
The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das on Wednesday announced reduction of repo rates by 35 basis points to 5.40 percent in its third bi-monthly monetary policy of 2019-20.
The repo rate under the liquidity adjustment facility (LAF) has been reduced by 0.35 basis points to 5.40 percent from 5.75 percent with immediate effect. Consequently, the reverse repo rate under the LAF stands adjusted to 5.15 percent, the marginal standing facility (MSF) rate and the Bank Rate to 5.65 percent and the CRR rates remain at 4 percent, RBI said.
This is RBI's second monetary policy after Modi 2.0 took charge in May.