SBI reduces the loan rate based on MCLR by 10 bp

MUMBAI: the largest lender in the country, the State Bank of India ( OSE ) on Monday announced the reduction in its marginal cost of the fund-based loan rate (MCLR) by 10 basis points (bp) within one year, starting on Tuesday (December 10).

This is the eighth consecutive MCLR cut by the lender this fiscal year, the lender said in a statement.

To transfer the benefit of our fall in the cost of funds to customers, we have reduced the MCLR by 10 bp to a year of expiration, he added.

The new one-year MCLR has been reduced to 8.90 percent from 8 percent.

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The reduction occurs when the Reserve Bank of India (RBI), in a surprising move, left key policy rates unchanged last Thursday at 5.15 percent.