State Bank of India (SBI) has cut interest rates, giving great relief to customers.
SBI: State Bank of India (SBI) has announced a reduction in interest rates, giving great relief to the customers. SBI has cut the base rate by one basis point i.e. 0.05 percent. After this deduction, the new interest rates will be 7.45 percent. Apart from this, the bank has also decided to cut the prime lending rate (PLR) by 0.05 percent, after which the PLR will be 12.20 percent. These new rates have come into effect from today, Wednesday 15 September 2021.
Earlier in April, SBI had cut home loan rates to 6.70 percent. Along with this, an additional discount of 0.05 percent was announced for women customers.
Explain that Base Rate is the minimum interest rate below which no bank gives loan. This rate is fixed by the Reserve Bank of India. The current base rate fixed by the Reserve Bank is 7.30-8.80 percent.
Loan rates will be cheaper!
This decision of SBI will have a direct impact on the pocket of the common man. With this, SBI customers can now reduce the monthly installment of many types of loans including home loan, auto loan, personal loan.
Please note that all home loans taken after July 2010 are linked to the base rate. In this case, banks are free to calculate the cost of funds on the basis of average fund cost or MCLR. The current MCLR rate fixed by RBI is 6.55-7.00 percent.