SBI cuts base rate by 30 basis points

MUMBAI: SBI on Monday slashed its base rate and prime-lending rate by 30 basis points for its existing customers effective from January 1, 2018.

The move is likely to trigger a similar action from other public as well as private sector lenders in the coming days. The revised base rate is reduced from 8.95 per cent to 8.65 per cent for existing customers and BPLR is reduced from 13.70 per cent to 13.40 per cent.

Additionally, SBI has decided to extend on-going waiver on home loan processing fees till March 31, 2018 for new customers keen on buying their dream house and other customers looking to switch their existing loans to SBI.

Ever since the banking sector moved to MCLR for better transmission of rates, experts said that there are a large number of borrowers who still had their loans linked to the old system.  “The reduction in base rate is a new year gift to the bank’s loyal customers as a large number of consumers who have their loan linked to base rate will be benefited by decrease in rates,” said P. K. Gupta, MD, retail and digital banking at SBI.