Finally, the India’s largest lender state bank of India has lowered down their interest rates linked to the external benchmarks by 75 basis points and cut its deposit rates to 20-100 bps too.
The bank said that the external benchmark linked lending rate and repo linked lending rate will stand at 7.05% and 6.65%. and the new rates will come in effective from 1st April.
The central bank has also introduced the external benchmarked lending rates from the last year, October in order to quicken the transmission. Due to this, the EMI on 30 year home loan under this interest rate will get cheaper by almost INR 52 rs per 1 Lakh.
The bank has also reduced the retail term deposit interest rates that is between 20-50 bps to all the tenors and the bulk term deposit rates were got reduced by 50-100 bps. It will be effective from March, 28th.