Good news! Home loans become cheaper as SBI decides to reduce MCLR

New Delhi, Aug 07: The country's biggest lender State Bank of India decided to cut its Marginal Cost of Funds based Lending Rate (MCLR) by 15 basis points (bps) across all tenure with effect from August 10.

The move will make SBI's car, home loans cheaper from August 10 as these loans are MCLR linked.

The one-year MCLR comes down to 8.25% per annum, from 8.40% annum. This is the fourth consecutive cut in MCLR in FY 2019-20 by the bank, SBI said.

From July 1 this year, SBI had started offering a repo rate-linked home loan product. The interest rate on this new home loan product gets revised automatically whenever there is a change in repo rate.