New Delhi, December 9: State Bank of India (SBI) on Monday announced a cut down in its Marginal Cost of Funds based Lending Rate or MCLR by 10 bps across all tenors. The new lending rates will be effective from December 10, 2019. With this development, home, car and other loans of SBI linked to MCLR will become cheaper. Notably, this is the eighth consecutive cut in MCLR in this financial year. SBI Slashes MCLR by 10 Basis Points, Lowers 1-Year Lending Rate to 8.15% From 8.25%.

SBI in its release said it continues to be the “cheapest loan provider in the country" and the latest rate reduction is meant to "pass on the benefit of its reducing cost of funds to the customers." Home Loans to Become Cheaper from October 1! Here's What Banks are Upto After RBI's Latest Direction to Attract New Borrowers.

Earlier, the Reserve Bank of India (RBI) Monetary Policy Committee decided to keep the key lending rate unaltered after five consecutive rate cuts this year. The RBI held its repo rate unchanged at 5.15 percent.

MCLR rates are based on the bank's own cost of funds. If a customer's loan is linked to bank's MCLR rate, the latest cut may not be brought down immediately. Marginal Cost of Funds-based loans basically has a one-year reset clause.

(The above story first appeared on LatestLY on Dec 09, 2019 01:21 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).