India’s largest lender State Bank of India on Friday lowered the lending rate (MCLR) making it loans cheaper. The bank cut its MCLR by 5 basis points across all tenors, and sharply slashed the deposits pricing between 15 and 75 basis points. The new rates would come into effect from November 10.

This is the seventh consecutive cut in borrowing rates by the bank in FY 2019-20.

With this reduction, the one-year MCLR, to which most of its loan prices are linked, will come down to 8 per cent, the bank said in a statement.

SBI also revised its interest rates on term deposits on account of adequate liquidity in the system. The new deposit rates will also be effective from November 10.

The bank also announced a revision in the rate of interest on fixed deposit by 15 basis points for one year to less than two years’ of maturity.

Bulk term deposit interest rates have been reduced by 30 to 75 bps across tenors, the bank said. It cited adequate liquidity available for lowering FD rates.

(With input from agencies)