SBI lending rates: The State Bank of India has cut its lending rate by 90 basis points which is its six-year low. PM Narendra Modi in his recent speech had addressed the banks asking them to act in ‘public interest’ and to keep the lower middle-class and the middle-class group at the focus of their activities and SBI seems to be the first to abide by his directions.
SBI lending rates cut down drastically, making home loans cheap
SBI, country’s biggest lender, has cut its lending rates for maturities for the overnight to three-year tenure. Furthermore, it has reduced the MCLR i.e. the funds based lending rates from 8.9 per cent to 8 per cent for one-year tenure.
It has also cut the floating rate from 8.65 percent to 8.6 percent on loans up to Rs 75 lakh. While for the loans above Rs 75 lakh, the floating rates are 8.65 per cent for women borrowers and for other borrowers it would be 8.7 per cent.
PNB has also cut its one-year MCLR rate by 70 basis points i.e. from 9.15 per cent to 8.45 per cent.
“Trend of interest rate reduction follows demonetisation. Banks have a substantial quantum of low-cost funds now…Welcome reduction of interest rates by SBI. Loan disbursements expected to pick up. Positive for the economy”, Economic Affairs Secretary Shaktikanta Das stated in a tweet.
Finance Minister, Arun Jaitley had said in December that the lending rates will go down since the lending capacity of the banks has been increased due to demonetisation.