New Delhi, December 10: After State Bank Of India (SBI) cut the Marginal-Cost of Funds Based Lending Rate (MCLR) by 10 basis points (bps), HDFC Bank, has also slashed MCLR by up to 15 bps across all tenors. This rate cut comes after the bank reduced its MCLR by up to 10 bps across all tenors.
The bank has stated that the latest rates will be applicable from December 7.
Basically, MCLR is the minimum lending rate below, which a bank is not permitted to lend. But there is good news, if your home loan is linked to MCLR, the latest cut may bring down your EMIs immediately.
The MCLR cuts across banks come as RBI Governor Shaktikanta Das, after the Monetary Policy Meet on December 5, said the apex bank is in no hurry to slash interest rates but ensure the benefits reach customers effectively.
After the latest cut, SBI's one-year MCLR comes down to 7.9 per cent per annum from 8 per cent per annum. This is the eighth consecutive cut in MCLR by SBI this fiscal.
Similarly, after HDFC’s rate cut, the MCLR for one-year tenor has been brought down to 8.15 per cent from 8.30 per cent. The MCLR for the overnight tenor has also been slashed by 15 bps from 7.95 per cent to 7.8 per cent, while the one-month tenor has been cut from 8 to 7.85 per cent.
The MCLR rate has been brought down from 8.4 to 8.25 per cent for the two-year tenors and from 8.5 to 8.35 per cent for three-year tenors.
SBI reduced its MCLR for overnight rates by 20 bps while for other tenors the cut is 10 bps, the bank said, adding the overnight rates will stand at 7.75 per cent.
The new one-year MCLR is fixed at 8.20 per cent as against 8.30 per cent.