SBI cuts benchmark lending rate, launches ‘SBI Wecare Deposit’

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The country’s largest lender State Bank of India has slashed the benchmark lending rate by 15 basis points and has launched a special deposit scheme, ‘SBI Wecare Deposit’ exclusively for senior citizens. SBI has introduced this scheme in the retail term deposit segment with the aim to safeguard the interests of elderly people with a higher interest rate in the current falling market.

According to the SBI,  an additional 30 basis points premium will be payable under this product for senior citizens’ retail term deposit with 5 years and above tenure only and the scheme will be in effect up to 30th September.

Effective from May 12, SBI has slashed its interest rates by 20 basis points on retail term deposits for ‘up to 3 Years’ tenure. It has been done in view of adequate liquidity in the system as well as with the bank. Now MCLR will come down to 7.25 percent from 7.40 percent with effect from May 10. Now the EMIs on eligible home loan accounts that are linked to MCLR will get cheaper by over Rs 255 for a 30-year loan of Rs 25 lakh.  While it’s a good news for the homebuyers, 50 basis points higher interest rate is applicable with respect to senior citizens fixed deposit for term deposits of ‘below 5 years’ duration.

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