New Delhi, December 13 (IANS). State Bank of India (SBI), the country’s largest government bank, has reduced the interest rates on loans and fixed deposits (FD). The new rates will be applicable from Monday.
This decision has been taken by SBI at a time when earlier this month the Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 5.50 percent to 5.25 percent.
Margin Cost of Funds Based Lending Rates (MCLR) has been reduced by 5 basis points or 0.05 percent by SBI. This is the rate on the basis of which banks decide the loan interest rate. Its decrease affects the interest rates of all types of loans.
SBI has reduced the overnight and one month MCLR rate from 7.90 percent to 7.85 percent. Three-month MCLR has been reduced from 8.30 percent to 8.25 percent. Six-month MCLR has been reduced from 8.65 percent to 8.60 percent.
At the same time, the bank has reduced the MCLR rate for one and two years from 8.75 percent to 8.70 percent. At the same time, MCLR rates have been reduced from 8.85 percent to 8.80 percent for three years.
The bank has also reduced the interest rates on FD.
According to the new rates of SBI, the interest rate for an individual on FD of less than Rs 3 crore for two to three years will now be 6.40 percent, which was earlier 6.45 percent. At the same time, the interest rate for senior citizens for the same period will now be 6.90 percent, which was earlier 6.95 percent.
The bank has reduced the interest rate on its special 444 days FD Amrit Vrishti from 6.60 percent to 6.45 percent.
According to SBI, now common people will get 3.05 percent interest rate on FD of 7-45 days. The interest rate on FDs of 46-179 days will be 4.90 percent, on FDs of 180-210 days will be 5.65 percent, on FDs of 211 days to less than one year, the interest rate will now be 5.90 percent.
The interest rate for the shortfall period of one year to two years will be 6.25 percent. At the same time, the interest rate on tenure of less than three to five years will be 6.3 percent. The interest rate on FD for five to 10 years will be 6.05 percent.
Apart from this, additional interest of 0.50 percent is being given by the bank to senior citizens.
–IANS
abs/