SBI cuts MCLR for ninth straight month making auto, home loans cheaper

The bank also reduced interest rate on term deposits - retail and bulk - by 10-50 basis points (bps) across various tenors

State Bank of India (SBI) has decided to reduce its marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps) across all tenors. The 1-year MCLR comes down to 7.85 per cent per annum from 7.90 per cent, with effect from February 10. This is the ninth consecutive cut in MCLR in FY20, SBI said in a statement. This will lead to a reduction in home and auto loan rates.
 
The lender also decided to slash interest rates on term deposits — retail and bulk — by 10-50 basis points (bps) across various tenors, as it is