CURRENT AFFAIRS

Detailed explanation-1: -The bank has also slashed its one-month lending rate by 10 basis points to 8.15 percent. Earlier this week, the country’s largest lender State Bank of India dropped its lending rate by five basis points across all tenors. Its new one-year MCLR is now 8.50 percent.

Detailed explanation-2: -Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend. MCLR replaced the earlier base rate system to determine the lending rates for commercial banks.

Detailed explanation-3: -Objective of MCLR Improving the transmission of the policy rate into lending rates of the bank. Bringing transparency in the methods followed by various banks for the determination of interest rate. Ensuring the availability of bank loans at rates that fair to both lenders and borrowers.

Detailed explanation-4: -Notably, SBI is currently offering a certain discount on home loans as part of its festive offer campaign, which is set to end on January 31, 2023. According to SBI’s website, the 1-year MCLR has been raised to 8.4% from 8.30% as of January 15. Other tenures’ MCLR has remained unchanged.