To anyone who’s looking for registering a home loan, there’s good news for you. The country’s largest lender, State Bank of India (SBI) has reduced its home loan rates by 20 basis points. It has actually revised its Marginal Cost of Funds-based Lending Rate (MCLR) and reduced it by 5 basis points or 0.05% across all tenors.
This new revision has led to its MCLR reducing from 8.45% p.a. to 8.40% p.a. for 1 year. A result of this has led to all its interest rates linked to MCLR, to come down by 5 basis points, effective from July 10, 2019.
Top Announcements Linked to Home Loan Reductions by SBI
This new rate marks the third rate cut by SBI, this financial year.
• SBI’s loan rates linked directly to its MCLR, comes down to 8.40% from 8.45%.
• This lowers the home loan rates by 20 basis points.
• The RBI Governor Shaktikanta Das expects quicker transmission by commercial banks, now that SBI has delivered three consecutive rate cuts of about 75 basis points.
• The Monetary Policy Committee has lowered the repo rate by 25 basis points, coming down to 5.75% in June.
• After RBI’s cut in June review, Bank of Maharashtra, Corporation Bank, Oriental Bank and IDBI Bank have reduced their benchmark lending rates by 5-10 basis points.
• The next meeting of the monetary policy committee is scheduled for August 5-9.
• Another rate cut in the August review session is expected to occur by RBI, according to analysts.
• SBI’s repo-linked home loan products introduced in June, 2019, benefits the customers directly, as any change in the key interest rate by the central bank would be passed on directly to them.
How Efficient is the Country’s Biggest Lender, SBI?
SBI is the country’s largest commercial bank, not just in theories.
• It flaunts the largest deposition of assets, deposits, branches, customers and employees, being the country’s largest mortgage lender.
• SBI has a deposit base of over Rs. 29 lakh crore since March 31, 2019 and advances of over Rs. 22 lakh crore.
• SBI alone marks about 35% of market share in home loans and auto loans.
• It has a network of 22,010 branches in India and an ATM / CDM network of over 58,000.
• SBI records a base of more than 6 crore customers using its internet banking facility, while 1.41 crore using its mobile banking services.
• SBI’s integrated digital and lifestyle platform, YONO has over 2 Crore, with more than 15 lakh logins per day.
• SBI holds the highest number of followers on Facebook, YouTube, LinkedIn and Pinterest.
• It also tops the list of followers on Facebook and YouTube across all banks worldwide.
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