SBI's New Year gift: Base rate cut by 30 bps, home loan fee waiver extended

Eight million customers to gain from move designed to reward loyalty

In a surprising move at the start of the year, State Bank of India (SBI) reduced its base rate and benchmark prime lending rates (BPLR) for existing customers by 30 basis points each effective from January 1.  

One basis point is a hundredth of a percentage point.

The bank said it would also extend its ongoing waiver on home loan processing fee till March 31 for new customers and for customers switching their loans from other banks to SBI.

Though all new customers are offered the marginal cost-based lending rate (MCLR), a large chunk of retail customers — especially