Very good news for SBI account holders, Bank made many big changes!
Very good news for SBI account holders, Bank made many big changes!
Very good news for SBI account holders, Bank made many big changes!
State Bank of India (SBI), India’s largest lender, will introduce some changes to customers from May 1. If you also have an account with SBI, it is important to know the new changes or new rules to bring in SBI. From May 1, SBI will combine its loan and deposit rates with the RBI’s repo rate, the bank had earlier announced. The new rule is expected to make loans cheaper. In addition, SBI is the first bank in India to implement this merger process.
1. Repo rate- interest rate linkage:
Generally all banks finalize the interest rate of their loan based on MCLR (Marginal Cost of Fund Base Lending Rate). Most of the time, banks do not pass on repo rate changes directly to customers. However, if banks combine the repo rate with the interest on the loan,
the EMI will decrease when the repo rate is announced by the RBI. SBI has done.
Also, SBI customers should note that the new repo rate-loan interest rate coupling process will only apply to loans above Rs 1 lakh.
Generally all banks finalize the interest rate of their loan based on MCLR (Marginal Cost of Fund Base Lending Rate). Most of the time, banks do not pass on repo rate changes directly to customers.
Also, SBI customers should note that the new repo rate-loan interest rate coupling process will only apply to loans above Rs 1 lakh.
2. Interest rate cut by SBI
After the announcement of repo rate cut by the Reserve Bank of India in its recent credit policy meeting,
various other banks including SBI have announced a cut in their interest rates.
SBI will bring its interest rates down by 0.10 per cent on a home loan up to Rs 30 lakh from May 1.
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