This was the fourth consecutive time that the Monetary Policy Committee reduced the rates.
Loans are set to get cheaper as Reserve Bank of India cut repo rate by 35 basis points to 5.40% yesterday.
The move is said to give a fillip to the economy.
Consequently, the reverse repo rate under the liquidity adjustment facility stands revised to 5.15 per cent, and the marginal standing facility rate and the Bank Rate to 5.65 per cent.
Within hours of the steep reduction in the repo rates, country’s largest lender, State Bank of India announced a 15 basis points reduction in its lending rates.
The SBI, in a statement, said, the new rates of 8.25 per cent will be effective from 10th of this month. After this cut, SBI home loans have become cheaper by 35 bps since April.
The bank is offering a repo linked home loans from 1st July this year.