Major Banks Begin To Slash Lending Rates, EMIs Set To Drop

State Bank of India, Indian Overseas Bank cut MCLR-linked lending rates by 5 bps

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Equated monthly instalments (EMIs) are set to fall with banks announcing a cut in their lending rates. The country’s largest lender, State Bank of India (SBI) led the way cutting the interest rate on its loans by 5 basis points (bps).

As a result, the one year marginal cost of funds based lending rate (MCLR) of SBI — to which most loans are linked — will now drop to 8.5%.

IOB said it would reduce its MCLR by 5 bps for loans of various tenures from April 10.