3.8 C
New York
Sunday 28 November 2021

Buy now


HomeEconomySBI, BoI, HDFC reduce rates for home, auto loans

SBI, BoI, HDFC reduce rates for home, auto loans

But the floating rate for a home loan of SBI being linked to the one-year MCLR and the rate being fixed for one year would delay the impact


Public sector State Bank of India (SBI), Bank of India (BOI) and private sector Bank (HDFC Bank) have cut the marginal cost-based interest rate of funds of various duration funds by 0.20%. This will make all types of loans cheap.

SBI, while reducing the marginal cost-based lending rate (MCLR) by 0.10%, said that now the new one-year rate will be 7.90%. It is now 8%. On the other hand, Bank sources said that the bank has reduced the by 0.15%. According to the bank’s website, the MCLR has now come down to 8.15% for a period of one year.

Bank of India has cut the -based interest rate by 0.20% for a day, while by 0.10% over the longer term. The new SBI rates will be applicable from 10 December, while Bank has implemented them from 7 December.

Auto loans linked to will also become cheaper. However, its benefits will not be available immediately. SBI has cut its MCLR for the eighth consecutive time in this financial year. Now its one-year MCLR rate will be reduced from 8 to 7.9%. SBI claims that it is the cheapest loan lending bank in the country.

However, the bank has not made any change in the loan related to the repo rate. For loans ranging from one day to one month, the rate has gone up to 7.65% for three months, 7.70% for six months, 7.85% for six months, 8.10% for two years and 8.20% for three years. Significantly, SBI has a market share of about 25% in home loans and auto loans.

It is worth noting that the RBI Governor had recently said in his monetary policy review that he was not in a hurry to cut further rates. Between January 2014 and 2019, the Reserve Bank has reduced the repo rate by 2.85% from 8 to 5.15%. But the banks have not yet passed their full benefits to the customers.

Decreasing will not affect the home loan interest rate or EMI immediately. Basically, the floating rate for a home loan of SBI is linked to this one-year MCLR and the rate is fixed for one year. That is, if the rate is fixed for someone in August and, after that, there is a change in the MCLR, then its benefit will be available only till next year that is next August.

Sirf News needs to recruit journalists in large numbers to increase the volume of its reports and articles to at least 100 a day, which will make us mainstream, which is necessary to challenge the anti-India discourse by established media houses. Besides there are monthly liabilities like the subscription fees of news agencies, the cost of a dedicated server, office maintenance, marketing expenses, etc. Donation is our only source of income. Please serve the cause of the nation by donating generously.

Support pro-India journalism by donating via UPI to surajit.dasgupta@icici

India tells public to shun Musk-backed Starlink until it gets licence https://www.reuters.com/technology/india-tells-public-shun-musk-backed-starlink-until-it-gets-licence-2021-11-27/

Winnebago Heli-Home Was a Real Flying RV https://www.thedrive.com/news/34753/the-winnebago-heli-home-was-a-real-flying-rv-that-needs-to-make-a-comeback-in-2020

With the success of "The Queen's Gambit" and a spike in interest at the beginning of the pandemic, chess is having a moment. But for world champion Magnus Carlsen, it's business as usual. https://cnn.it/3rdo1Yy

@jeremyfaust @MonicaGandhi9 was right then and she's right now.

The presence of media fear mongering doesn't mean that fear mongering is justified or vindicates your own.

Read further:

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -