SBI cuts base rate by 30 basis points

Loans to existing borrowers are set to get a little cheaper with the State Bank of India (SBI) reducing its base rate by 30 basis points, a move that is likely to be followed by other banks.

The move is also unlikely to benefit new borrowers whose loan rates are linked to the so-called marginal cost of funds-based lending rates (MCLR). One basis point is a hundredth of a percentage point.

SBI’s revised base rate now stands at 8.65%. The lender has kept MCLR for January unchanged at 7.70-8.10%.