SBI Offers Diwali Gift: Cuts MCLR by 25 Basis Points, Making Home and Retail Loans Cheaper for Borrowers - Read Now 

State Bank of India (SBI) has announced a festive Diwali gift for borrowers by cutting the MCLR (Marginal Cost of Funds Based Lending Rate) by 25 basis points. This interest rate cut will be effective from October 15 to November 15, 2024, making home loans and retail loans cheaper for borrowers.

Despite the Reserve Bank of India's (RBI) neutral stance on the repo rate, SBI decided to lower its MCLR for the one-month tenure from 8.45% to 8.20%. This reduction will impact loans tied to the MCLR, easing financial burdens for customers. However, rates for other tenures remain unchanged.

The new rates are as follows: Overnight MCLR remains at 8.20%, six-month MCLR stands at 8.85%, and the one-year MCLR is revised to 8.95%. The two-year and three-year MCLRs are 9.05% and 9.1%, respectively.

This move is expected to benefit millions of borrowers across India, especially in the housing sector, as SBI’s rate cuts will lower EMI payments. With 10 million people entering the job market monthly, SBI’s decision to reduce loan rates aligns with the increasing demand for affordable loans.

SBI’s decision to reduce MCLR ahead of any move by the RBI shows the bank’s proactive approach to supporting economic growth and job creation. The MCLR reduction will have a positive impact on the Indian economy, stimulating sectors like housing, retail, and small business.

This Diwali, SBI’s loan interest rate reduction comes as a much-needed relief, providing affordable financing options to millions of borrowers across India.