SBI Cuts Lending Rate: The country’s largest lender State Bank of India on Thursday slashed the benchmark lending rate by 0.15 basis points and introduced a special deposit scheme for senior citizens with a higher interest rate.

State Bank of India (SBI), the country’s largest lender, on Thursday, announced a 15-basis-point (0.15 percentage-point) reduction in its lending rates across all tenors. Following the reduction, which will come into effect from May 10, the one-year MCLR or marginal cost of the funds-based lending rate will come down to 7.25 percent from the current 7.40 percent. That marked the 12th consecutive reduction in the MCLR by the state-run lender.

To safeguard the interests of senior citizens in the current falling rate regime, the bank has introduced a new product ‘SBI Wecare Deposit’ for them in the retail term deposit segment, SBI said in a statement.

Under this scheme, an additional premium of 30 bps, or 0.30 percentage point, will be payable for senior citizens’ retail term deposits with tenors of five-years and above.

EMIs on eligible home loan accounts (linked to the MCLR) will come down by nearly Rs 255 for a 30-year loan of Rs 25 lakh, SBI said in a press release.

Besides the lending rate, the bank also announced a 20-bps cut in the interest rates for retail term deposits with tenors of up to three years. This will take effect from May 12.

Currently, SBI FDs between 7 days to 45 days fetches 3.5%. Term deposits between 46 days to 179 days give 4.5%. FDs of 180 days to less than one year fetches 5%. Deposits with maturity between 1 year and up to 10 years give 5.7%.

In March, SBI had slashed the interest rate on FDs by 20-50 bps across tenors effective 28 March 2020. That was the second rate cut in March. Earlier the bank had cut interest rates on FDs on 10 March.

Earlier, SBI also had cut interest rates on all savings bank accounts effective 19 April. The interest rate on SBI saving accounts for deposits up to 1 lakh, and deposits above 1 lakh is 2.75%.