State Bank of India customers will benefit from the repo rate reduction. This is because the country's largest public sector bank has announced a cut in the External Benchmark Linked Rate (EBLR). As a result, interest rates on various loans from this bank will decrease. Therefore, those who have already taken loans from this bank will see their EMIs become cheaper. Even those who take loans from this bank in the future will find their loans cheaper compared to before.
The Reserve Bank of India reduced the repo rate by 25 basis points in December itself. Following this, State Bank also reduced the External Benchmark Linked Rate by 25 basis points. As a result, SBI's new EBLR is 7.90 per cent. Additionally, this bank has reduced the Marginal Cost of Funds-Based Lending Rate by 5 basis points. Consequently, the MCLR has decreased from 8.75 per cent to 8.70 per cent. Along with this, the Base Rate or BPLR has been reduced from 10 per cent to 9.90 per cent. This new rate will be effective from December 15.
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Along with State Bank, another public sector bank in the country, Indian Overseas Bank (IOB), has made changes to interest rates on various loans. This bank's External Benchmark Lending Rate has decreased by 25 basis points. As a result, it has come down from 8.35 per cent to 8.10 per cent. Additionally, Indian Overseas Bank has also reduced the Marginal Cost of Funds-Based Funding Rate by 5 basis points.
As a result, home loans, vehicle loans and personal loans will become cheaper. EMIs for such loans will decrease.
