The country’s largest lender State Bank of India (SBI) has cut its marginal cost of fund-based lending rate (MCLR) by up to 15 basis points across various tenors effective March 10, a move which will make home loans cheaper. SBI has reduced its one-year MCLR by 10 basis points to 7.75% from 7.85% earlier. This is 10th consecutive cut in MCLR by the bank in the current fiscal. The lender had on February 10th had cut MCLR rates by 5 basis points across all tenors.

MCLR rates are based on the bank’s own cost of funds. If your home loan is linked to SBI’s MCLR rate, the latest cut may not bring down your EMIs immediately as MCLR-based loans typically have a one-year reset clause.

As part of today’s revision, SBI’s overnight and one-month MCLRs have been reduced by 15 basis points to 7.45% each. Three-month MCLR has been revised to 7.50% from 7.65%.

The new two-year and three-year MCLRs stand reduced by 10 basis points to 7.95% and 8.05% respectively.