State Bank of India has decreased the Marginal Cost related to Fund Based Lending Rate (MCLR) by around 10 basis points i.e. 0.1 percent. This will decrease the EMI of its millions of customers have taken a home loan. This deduction will be applicable from 10 December i.e. Tuesday. This will make the floating rate home loans cheaper.
The loans on auto-linked to the MCLR will also become cheaper. However, the benefits will not come to effect immediately. SBI has cut the MCLR for the eighth consecutive time in this financial year. Now its one-year MCLR rate will be reduced from 8 to 7.9 percent. SBI claims that it is the cheapest loan lending bank in the country.