Repo Rate cut Effects: SBI decreases Loans EMI
Repo Rate Cut Effect: The Reserve Bank of India has cut 25% repo rate. After these cuts, the State Bank of India has decreased the EMI. Now the home buyers are happy with it. SBI also cuts the Fixed Deposit interest rates. But these cuts are not for all investors. The new rate will be applied from the date 15th December.
Know The New Rates: Regarding deposits, SBI has kept interest rates stable for most retail deposits below ₹3 crore. However, the bank has reduced the interest rate on its popular 44-day ‘Amrit Vrishti‘ FD scheme from 6.60% to 6.45%. For senior citizens, interest rates remain high, but there has been a slight reduction in the 2-3 year deposit slab, from 6.95% to 6.90%. For individuals under 60 years of age, the FD rates for the same tenure have been reduced from 6.45% to 6.40%.
While depositors have been disappointed, borrowers have received some relief on loan installments. SBI has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 basis points across all tenors. The one-year MCLR, a key benchmark for most loans, has now fallen from 8.75% to 8.70%. On the other hand, the bank has made a sharper reduction in its External Benchmark Linked Rate (EBLR), which applies to most floating-rate retail loans such as home loans. The bank has reduced the EBLR by 25 basis points, from 8.15% to 7.90%. The bank has also lowered its base rate for legacy borrowers from 10.00% to 9.90%.
