SBI reduces MCLR reset frequency from 1 year to 6 months

State Bank of India, one of the largest banks in India, has good news for its customers. SBI has reduced the MCLR reset frequency from 1 year to 6 months," the bank tweeted.

This will benefit customers who who are going to take SBI's home loans, auto loans and personal loans. SBI has given this information on Twitter.

"Enjoy the benefits of a reduction in the interest rate without waiting for a year. SBI has reduced the MCLR reset frequency from 1 year to 6 months," SBI tweeted.

Currently, the one-year MCLR of SBI, against which home loans are typically benchmarked, stands at 7% while six-month at 6.95%. In July, SBI has announced a cut in its short-term MCLR rates to boost credit off take and revive demand.

Enjoy the benefits of a reduction in the interest rate without waiting for a year.
SBI has reduced the MCLR reset frequency from 1 year to 6 months.
#SBI#StateBankOfIndia#MCLR#InterestRatepic.twitter.com/MEnvKy4SIJ

— State Bank of India (@TheOfficialSBI) September 3, 2020

What is MCLR?

MCLRis a tenor-linked internal benchmark, which means the rate is determined internally by the bank depending on the period left for the repayment of a loan. The RBI introduced the MCLR methodology for fixing interest rates from 1 April 2016