In a Holi gift for borrowers, the State Bank of India (SBI) has reduced the marginal cost-based lending rate (MCLR) by 10-15 basis points or 0.10-0.15 per cent (100 basis point/bps = 1 per cent) across tenors .
Effective from March 10, 2020, the one-year MCLR has been cut by 10 bps to 7.75 per cent, down from 7.85 per cent.
Similarly, three-month MCLR now stands at 7.50 per cent, down 15 bps from 7.65 per cent.
MCLR rates effective from March 10, 2020
| Tenor | Existing MCLR (In %) | Revised MCLR (In %) |
| Over night | 7.6 | 7.45 |
| One Month | 7.6 | 7.45 |
| Three Month | 7.65 | 7.5 |
| Six Month | 7.8 | 7.7 |
| One Year | 7.85 | 7.75 |
| Two Years | 8.05 | 7.95 |
| Three Years | 8.15 | 8.05 |
Source: SBI website.
This is the second time that the bank has reduced the MCLR rates in one month. In February, 2020, bank reduced its MCLR across all tenures by 5 bps.
However, borrowers must remember that the reduction of MCLR will impact their equated monthly instalment (EMI) only when the reset date of their loans arrives.
Typically, in a home loan,…
