Mumbai: Making its loans cheaper, the nation’s largest lender State Bank of India has revised downwards its lending rates based on marginal cost of funds by 5 basis points to 9.15 per cent.

The new minimum lending rates are effective from May 1, the bank said in a release here.

Last month, the lender had set the MCLR at 9.20 per cent after the Reserve Bank cut repo rate by 25 basis points. With this reduction, the home loan interest rate for women borrowers has come down to 9.35 per cent, while for others it now stands lower at 9.40 per cent. Interest rates on car loans have also been reduced by 5 basis points (one basis point is equivalent to one-hundredth of a percentage point). The state-run bank has now kept a processing fee of Rs 500 for SBI car loans, NRI car loans, SBI Combo loan scheme and SBI Loyalty car loan scheme. The processing fee for these car loan schemes were waived till April 30. Banks moved to the MCLR regime last month for pricing their loans. The move is likely to help in better transmission of the monetary policy rates. — PTI