Reportedly State bank of india has cut interest rates on loans and fixed deposits a day after the Reserve bank of India's (RBI) monetary policy announcement. This is good news for sbi customers as home and auto loans will be now cheaper. Besides interest rates on loans, the top public lender in india has also slashed rates on fixed deposits.
Furthermore the state-owned bank on friday announced a reduction in marginal cost-based lending rate (MCLR) by five basis points or 0.05 per cent across all tenors. This will come into effect from february 10. Apparently it is worth mentioning that it is the ninth rate cut by sbi in the current fiscal. The one-year MCLR has now come down to 7.85 per cent from the earlier 7.90 per cent.
Meanwhile SBI's interest rate cut will benefit its customers, it is likely that interest rates on home loans will further reduce due to the impact of delayed transmission of RBI's past rate cuts. Perhaps bank OF INDIA' target='_blank' title='rbi-Latest Updates, Photos, Videos are a click away, CLICK NOW'>rbi, however, kept the repo rate unchanged in its sixth bi-monthly policy review but announced a few measures to boost credit, which could lead to a further reduction in interest rates. Moreover it also indicated that loans sanctioned by banks to medium and small-scale enterprises (MSMEs) will be linked to an external benchmark from april 1, 2020. This will make lending rates cheaper for small businesses.