How SBI home loan borrowers will save after the bank cut its lending rates
The country's largest lender, State Bank of India (SBI), reduced its MCLR (marginal cost
of funds based lending rates), by 5 basis points (bps). This is the first time the bank has
cut its lending rate in 10 months. After the cut, SBI's 1-year MCLR stands at 7.95 per cent
as against 8 per cent earlier.
So, how much do you stand to gain from this reduction? Do you really have that much to
cheer about? Yes, it is true that as MCLR falls, lending interest rates also fall. But not all
borrowers get to reap the benefits. While new borrowers benefit immediately, existing
ones have to wait for a certain amount of time.
Here's how much you will save on your equated monthly instalments (EMI) and total
interest burden because of the 5 bps reduction in MCLR.
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