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SBI cuts lending rate by 15 bps, launches scheme for senior citizens

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New Delhi: In a relief to customers, State Bank of India on Thursday slashed benchmark lending rate by 15 basis points, and introduced special deposit scheme for senior citizens with higher interest rate.

The country’s largest lender has introduced a new product “SBI Wecare Deposit” for senior citizens in the retail term deposit segment to safeguard their interests in the current falling rate regime.

Under this new product, an additional 30 basis points premium will be payable for senior citizens retail term deposits with ‘5 Years and above’ tenor only, it said.

The scheme will be in effect up to September 30, it said.

However, SBI slashed its interest rates on retail term deposits by 20 basis points for ‘up to 3 Years’ tenor, effective from May 12 in view of adequate liquidity in the system as well as with the bank.

With regard to revision in the lending rate, the bank said, the marginal cost of funds based lending rate (MCLR) comes down to 7.25 per cent from 7.40 per cent with effect from May 10. Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by approx Rs 255 for a 30 year loan of Rs 25 lakh, it said. This is the 12th consecutive reduction in the bank’s MCLR, the lender added.
With regard to senior citizen fixed deposits, it said, 50 basis points higher interest rate is applicable for term deposits of ‘below 5 years’ tenor. “For retail term deposits of ‘5 years & above’ tenor (new product) 80 basis points higher than the rate applicable for the general public (30 basis points extra premium),” it said.

This additional premium will not be payable in case of premature withdrawal of such deposits, it said.

Last month, SBI had trimmed the MCLR by 35 basis points across all tenors effective April 10. The one-year MCLR comes down to 7.40 per cent per annum from 7.75 per cent.

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