In a major relief for its customers, State Bank of India (SBI) on March 27 slashed its external benchmark linked lending rate (EBR) as well as repo linked lending rate (RLLR) by 75 bps.

The new rates will come into effect from April 1. The borrowers availing loans based on external benchmark-linked lending rate (EBR) and repo-linked lending rate (RLLR) would be eligible for lower rates, the banks stated in a statement.

“Responding to RBI’s extraordinary monetary policy measures to support the wider economy, SBI passes on the entire 75 bps Repo rate cut to its borrowers availing loans linked to External Benchmark linked lending rate (EBR) as well as Repo Linked Lending rate (RLLR),” it said.

The SBI has reduced the external benchmark-linked lending rate to 7.05 per cent per annum from 7.80 per cent, and the repo-linked lending rate to 6.65 per cent per annum from 7.40 per annum.

Consequently, EMIs on eligible Home Loan accounts (linked to EBR or RLLR) would get cheaper by around Rs 52 per 1 lakh on a 30-year loan.

Further, in view of adequate liquidity in the system and the additional liquidity measures announced by the RBI on Friday, the SBI said that it would realign its interest rate structure on deposits with effect from March 28, 2020.

The bank reduced its retail term deposit interest rates by 20 bps to 50bps across tenors and bulk term deposit interest rates by 50 bps to 100 bps across tenors.

In a bid to mitigate the impact of the coronavirus pandemic on the India economy, RBI Governor Shaktikanta Das on Friday announced a 75 bps cut in repo rate to 4.40 per cent from 5.15 per cent.

In March 2004, the RBI had reduced repo rate by one percentage point or 100 basis points.