State Bank of India has lowered its lending rate for home loans to 9.45 per cent and further to 9.4 per cent for women customers following implementation of a new interest rate calculation regime mandated by RBI.
The lending rates of other banks may also fall soon with the Marginal Cost of Funds based Lending Rate (MCLR) system coming into force with effect from April 1.
If the banks decide to pass on the latest 0.25 per cent policy rate cut announced by RBI on April 5, the rates for borrowers may go down further.
SBI in a statement said that it has fixed its home loan interest rate at 9.45 per cent, which is 0.25 percentage point more than its one-year marginal cost of fund-based lending rate of 9.20 per cent.
However, women borrower would get the loan 0.20 per cent above the MCLR at 9.40 per cent, it said.
The new rate is applicable from April 1, it said.
As per the information available on SBI website, the earlier home loan rate 9.5 per cent for women borrowers and 9.55 per cent for others.
Similarly, car loan would be available at 0.60 per cent above 1 year MCLR. Thus, it would be 9.80 per cent, the statement said.
Student loans of up to Rs 7 lakh would be available at 2 per cent above MCLR, currently 11.20 per cent while 1.70 per cent above MCLR at 10.90 per cent.
While SBI Skill loan will be available 3.90 per cent above MCLR at 13.10 per cent. Besides, other loans like personal loan, loan against securities etc have also been linked to MCLR.
The base rate or the minimum lending rate of the bank is 9.3 per cent.
RBI had asked banks to price fixed-rate loans of up to three years based on their marginal cost of funds from April 1. All banks have to follow MCLR system, a new uniform methodology which will ensure fair interest rates to borrowers as well as to banks.