SBI cuts base rate by 30 basis points

The State Bank of India on Monday reduced the base rate and benchmark prime lending rates by 30 basis points each, which will benefit nearly 80 lakh customers on the old pricing regime.

State Bank of India revised down the base rate to 8.65 per cent for existing customers from 8.95 percent, while the benchmark prime lending rates is down from 13.7 per cent, to 13.4 per cent. The new rates will be effective from 1st January.

The bank, however, did not change the marginal cost



of funds-based lending rate, MCLR, which would have brought down the cost for all borrowers. The one-year MCLR of the bank stands unchanged at 7.95 per cent.

The bank also extended its ongoing waiver on home loan processing fees till the end of this March for new home loan customers and other customers looking to switch their existing loans to SBI.We talk to financial expert Jaynto Roy Chaudhari about its meaning to common-man.