India's largest lender, State Bank of India (SBI) on Thursday, announced a 15 basis points (bps), or 0.15 percent reduction in its lending rates across all tenors.
Following the reduction, which will come into effect from 12 May, the Marginal Cost of Funds based Lending Rate (MCLR) will come down to 7.25 percent, from the current 7.40 percent, reports the NDTV.
According to a release by SBI, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by nearly Rs 255 for a 30-year loan of Rs 25 lakh.
The reduction in MCLR, is the 12th consecutive of its kind, offered by the bank.
The bank also introduced a new special deposits scheme for senior citizens, called "SBI Wecare Deposit". Under this new scheme, an additional 30 bps, or 0.30 percent premium will be payable for senior citizens' retail term deposits with tenors of 5 years and above.
Besides the lending rate, the bank also announced a 20 bps, or 0.20 percent cut in the interest rates for retail term deposits with tenors of up to 3 years.
SBI is the largest commercial bank in terms of assets, deposits, branches, customers and employees. It is also the largest mortgage lender in the country.