SBI Cuts 0.15% in Interest Rates, ‘SBI Veecare Deposit’ For Senior Citizens

SBI Rate Cuts by 0.15% – State Bank of India (SBI) has reduced its Fund’s Marginal Cost Based Interest Rate (MCLR) by 0.15 per cent. Apart from this, this country’s largest bank has also started a special deposit scheme with higher rate of interest for senior citizens. SBI said in a statement that keeping in mind the interests of senior citizens in the current era of falling interest rates, the bank has introduced a new product ‘SBI WeCare Deposit’ for them. The bank has launched this scheme under retail term deposit segment.

Senior citizens will be given an additional 0.30 per cent premium on retail term deposits of five years and above. The scheme will remain in force till 30 September. However, SBI has cut the interest rate on retail term deposits up to three years by 0.20 per cent. The bank has said that it has taken this step because of the system and its sufficient liquidity. This deduction will be applicable from May 12.

On the revision in lending rates, the bank said that it has reduced the Fund’s marginal cost based lending rate (MCLR) from 7.40 per cent to 7.25 per cent. This deduction will be effective from May 10. The bank said that this will reduce the monthly installment (EMI) by about Rs 255 on a 30-year-old Rs 25 lakh housing loan linked to MCLR. This MCLR has been cut by the bank for the 12th consecutive time.

The public sector Indian Overseas Bank (IOB) and Bank of Maharashtra (BOM) announced a cut in the marginal cost-based interest rate (MCLR) of their funds before SBI cut interest rates. IOB sent to the stock market in the regulatory information,  bank has revised the MCLR from 10 May 2020 till further review. The Chennai headquartered bank has said that the interest rate for the marginal cost-based loan of the fund for a period of one year has been reduced by 0.10 per cent to 8.15 per cent. The reduced rate will be applicable from 10 May. The MCLR rate of one year duration is the main base rate for loans such as personal, car and home loans.

Read More – How To Calculate the MCLR ?

In a notice sent to the Bombay Stock Exchange by the IOB, the bank said that the interest rate will be reduced from the current 8.10 per cent to 8.05 per cent for a period of three months and 8.10 per cent from the current 8.15 per cent for a period of six months. The bank has said that the interest rate on the loan for a period of one year will be reduced from 8.25 per cent to 8.15 per cent and for a period of two years it will be reduced from 8.30 per cent to 8.20 per cent.

At the same time, Pune-based Bank of Maharashtra reduced the rate of one year MCLR based interest rate by 0.10 percent to 7.90 percent. In the information sent to the stock markets, the bank has said that the bank has reviewed its interest rates as per RBI guidelines, after which the bank has decided to reduce its MCLR rate from May 7.

Read – Basic Details of Marginal Cost of Funds based Lending Rate (MCLR) By RBI

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Bank of Maharashtra has said that the MCLR rate on loans ranging from one day to six months will range from 7.40 to 7.70 per cent. In contrast, Canara Bank, another public sector bank, has kept its MCLR rate unchanged. The bank’s one-year MCLR rate has been kept unchanged at 7.85 per cent.