New Delhi: A good news has come for you all. State Bank of India (SBI) is again giving you relief amidst lockdown. The bank has decided to reduce its current interest rates again. The new rates will be applicable from 10 May.
Such a percentage reduction in interest rates
State Bank of India has cut interest rates by 0.15 per cent. After this deduction, interest rates have come down from 7.40 per cent to 7.25 per cent. According to our partner Zeebiz.com, the new rates will be applicable from 10 May. SBI has cut MCLR for the 12th consecutive time. At the same time, this is the second consecutive cut in the financial year 2020-21. Explain that earlier in April, SBI had cut interest rates by 0.35 per cent.
EMI burden will be less
The direct benefit of reducing interest rates by SBI will be on your monthly instalments. SBI has taken this big decision regarding home-auto-personal loans. This decision will reduce the EMI on loans based on MCLR. Let me tell you, the RBI had cut the repo rate by 75 basis points to boost the economy among the coronavirus. After this deduction of SBI, the EMI of the home loan account (linked to MCLR) will be reduced. On a loan of 25 lakh rupees for 30 years, about 255 rupees will be saved every month.
Rate of interest reduced on term deposit
SBI has also reduced the rates of its retail term deposits. SBI has cut interest rates on 3-year retail term deposits (fixed deposits) by 0.20 per cent due to the system and the bank having sufficient liquidity. On retail term deposits, these rates will be applicable from 12 May 2020.