India's largest lender cuts MCLR by 25 bps, RLLR by 40 bps; Indian Overseas Bank also reduces rates

New Delhi: Country's largest bank State Bank of India (SBI) will slash marginal cost of fund based lending rate (MCLR) by 0.25 percentage points for all tenors.

The one-year MCLR has been cut to 7 percent now. It was 7.25 percent earlier. The new rates will be effective from 10 June 2020. SBI will also cut external benchmark linked lending rate (EBR) as well as repo linked lending rate (RLLR) by 0.40 percentage points from 1 July 2020, the bank said in a statement.    

SBI has cut the MCLR for 13 consecutive times now.

Indian Overseas Bank has also cut MCLR by up to 0.30 percentage points for all tenors. It has also cut interest rate on loans linked to Repo Linked Lending rate (RLLR) from 7.25 percent to 6.85 percent.

This will make home loans and auto loans cheaper. Even the MSMEs will get loans at lower rates. 

The one year MCLR has been slashed 20 basis points, the bank said in a statement.