Mumbai, Apr 7 (IANS): Lending major State Bank of India (SBI) on Tuesday reduced the marginal cost of funds-based lending rate (MCLR) by 35 basis points across tenors.

In financial parlance, MCLR is an internal reference rate that commercial banks use to determine the minimum interest rates on loans.

In a statement, the bank said that the new rates will come into effect from April 10.

"The one year MCLR comes down to 7.40 per cent p.a from 7.75 per cent p.a. with effect from April 10, 2020. This is the eleventh consecutive cut in MCLR in FY 2019-20," it said.

"Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs. 24.00 per 1 lakh on a 30 year loan."

According to the bank, in view of adequate liquidity in the system, SBI realigned its interest rates on 'Savings Bank Deposits, with effect from April 15 th, 2020.

"For balances upto Rs 1 lakh: 25 bps reduced from 3 per cent to 2.75 per cen t... For balances above Rs 1 lakh: 25 bps reduced from 3 per cent to 2.75 per cent," the statement said.