SBI cuts MCLR by 5-10 bps upto three months tenor to revive demand

Country’s largest lender State Bank of India has decided to reduce Marginal Cost of Funds based Lending Rate (MCLR) on short term loans by 5-10 basis points to boost credit off take and revive demand.

The revision, 14th consecutive reduction in the Bank’s MCLR, will come into effect July 10, 2020, Bank said in statement on Wednesday.

With this revision, SBI’s MCLR upto three-months tenor comes down to 6.65 per cent per annum, which is on par with the External Benchmark linked lending rate (EBR), SBI said.

Two public sector banks --- Canara Bank and Bank of Maharashtra --- have already announced reduction