SBI home loans, auto loans interest rate cut sharply! Great news for borrowers

SBI home loans, auto loans : The State Bank of India has sharply reduced interest rates on its home loans and auto loans. SBI has cut MCLR rates by 5 bps across all tenors. The latest rate cut comes a day after the Reserve Bank of India's (RBI) monetary policy review meet. The bank said its marginal cost of funds-based lending rate (MCLR) will be reduced by 5 basis points (0.5 percentage point). Significantly, fixed deposit (FDs) interest rates too have been cut, which will disappoint investors. Country's top lender informed about the cut in retail fixed deposits or FD rates through a statement on Friday morning. The new rates will take effect on February 10.

This is the ninth consecutive rate cut in MCLR in FY 2019-20. After the latest cut, the one year MCLR has been reduced to 7.90 per cent from 7.85 per cent earlier.

"Country’s largest lender State Bank of India (SBI) has announced the reduction in its MCLR by 5 bps across all tenors. The one year MCLR comes down to 7.85% p.a from 7.90% p.a. with effect from 10th February 2020. This is the ninth consecutive cut in MCLR in FY 2019-20," SBI said in a statement.

WATCH Zee Business TV LIVE Streaming Online -

"In view of surplus liquidity in the system, SBI realigns its interest rate on Retail Term Deposits (less than Rs.2 Crs) and Bulk Term Deposits (Rs.2 Crs & above) w.e.f. February 10, 2020. The bank slashed Term Deposits rates by 10-50 bps in the Retail segment and 25-50 bps in the Bulk segment," it further added.

The impact of recent RBI policy measures and reduction in deposit rates will be reflected in the next review of MCLR, the bank added.

On Thursday, the RBI has kept the repo rates unchanged amid uncertain inflation outlook but left the door open for more easing in future. All the six members of the RBI Governor Shaktikanta Das-led Monetary Policy Committee voting unanimously, the repurchase or repo rate was maintained at 5.15 per cent while retaining its accommodative stance. The RBI had cut its policy rate by 135 basis points over five straight meetings last year, before hitting the pause button in December on inflationary concerns.