SBI brings cheer to home loan borrowers; lowers base rate by 5 basis points
SBI has cut base rate to 8.95% from 9% for home loan borrowers. It will become effective from October 1.
- Sep 29, 2017,
- Updated Sep 29, 2017 12:01 PM IST
After Andhra Bank and Bank of Baroda, country's biggest bank, the State Bank of India (SBI) too has slashed the base rate on home loans. SBI has cut base rate to 8.95% from 9%. This will be effective from October 1. The announcement has come a days ahead of monetary policy announcement by Reserve Bank of India (RBI).
Andhra Bank and Bank of Baroda on Thursday reduced their base rate to 9.55% from 9.70% and 9.15% from 9.50% respectively,. This will come in force starting October.
The move will benefit existing home loan borrowers, who had availed home loans before April 1, 2016, as their home loans are linked to the erstwhile base rates of the banks.
There are many home loan borrowers who have not transitioned from base rate to marginal cost based lending rates (MCLR). The latter is a benchmark lending rate system that was introduced since April 2016 and is applicable to borrowers joining thereafter. On the other hand, base rate is the minimum rate set by the RBI for banks for lending loans to customers.
Sometime back another public sector lender, the Punjab National bank (PNB) had also cut its base rate by 0.20% to 9.15%.
After Andhra Bank and Bank of Baroda, country's biggest bank, the State Bank of India (SBI) too has slashed the base rate on home loans. SBI has cut base rate to 8.95% from 9%. This will be effective from October 1. The announcement has come a days ahead of monetary policy announcement by Reserve Bank of India (RBI).
Andhra Bank and Bank of Baroda on Thursday reduced their base rate to 9.55% from 9.70% and 9.15% from 9.50% respectively,. This will come in force starting October.
The move will benefit existing home loan borrowers, who had availed home loans before April 1, 2016, as their home loans are linked to the erstwhile base rates of the banks.
There are many home loan borrowers who have not transitioned from base rate to marginal cost based lending rates (MCLR). The latter is a benchmark lending rate system that was introduced since April 2016 and is applicable to borrowers joining thereafter. On the other hand, base rate is the minimum rate set by the RBI for banks for lending loans to customers.
Sometime back another public sector lender, the Punjab National bank (PNB) had also cut its base rate by 0.20% to 9.15%.