SBI cuts interest rate on CC/OD, introduces repo linked home loan product

Country’s largest public lender State Bank of India announced introduction of repo rate linked home loans from 1 July.

The bank said it will pass on the 25 bps repo rate cut, announced by the Reserve Bank of India yesterday, to some cash credit borrowers.

SBI also announced slashing of effective repo-linked lending rate for CC/OD (cash credit/overdraft), which will be in effect 1 July onwards.

“The benefit of reduction in the repo rate by 25 bps has been passed in its entirety to our CC/OD customers (limits above 1 lakh), with effect from July 1,” SBI said.

The effective repo-linked lending rate (RLLR) for CC/ OD customers is 8% now, it said, while for savings deposits above1 lakh the new rate would be 3%.

In March, the bank had linked all CC accounts and ODs with limits above 1 lakh to the repo rate plus a spread of 2.25%. For above 1 lakh, it had set its savings deposit rates to 2.75% below the repo rate.