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State Bank of India (SBI) has lowered its base rate by 30 basis points to 8.65%, while it has not made any changes to its marginal cost of lending rate (MCLR).
The reduction in the base rate will benefit those borrowers who had raised floating rate loans, including home loans, before April 2016. With this reduction, SBI’s base rate is the lowest among lenders.
Furthermore, the advantage for SBI is with this reduction its old borrowers now do not have the same incentive to get their loans refinanced from other borrowers.
