State Bank of India's MCLR, the rate to which all of its loans are linked, now stands at 8.40 per cent, from 8.45 per cent earlier, according to the statement.

This reduction in MCLR lowers the home loan rates by 20 basis points since April 10, 2019.

On Monday, the RBI governor said that after delivering three back-to-back rate cuts to the tune of 75 bps, the central bank expects a quicker transmission by commercial banks.

The Monetary Policy Committee (MPC) had lowered the repo rate by 25 basis points to 5.75 per cent in June.

That marked the third straight reduction of 25 basis points in the central bank's bi-monthly policy review.

Since the cut by the RBI in its June review, Bank of Maharashtra, Corporation Bank, Oriental Bank and IDBI Bank have reduced their benchmark lending rates by 5-10 basis points.

The next meeting of the monetary policy committee is scheduled for August 5-9.

Many analysts expect another rate cut by the RBI in its August review.

Meanwhile, SBI introduced repo-linked home loan products in June this year. A repo rate-linked home loan means that any changes in the key interest rate by the central bank would be passed on directly to the customers.