MCLR is a benchmark rate through which banks such as SBI lend home loans to borrowers.

SBI or State Bank of India, the country largest lender, will reduce interest rate on home loans starting August 10, 2019. The bank said its marginal cost of funds-based lending rates (MCLR) will be slashed by 15 basis points or 0.15 percentage point across all tenors. MCLR is a benchmark rate through which banks lend money to home loans borrowers. When MCLR goes down, home loans become cheaper. With the latest cut in the MCLR, the effective reduction in home loan rates since April 10 is 35 basis points, according to SBI's statement.

Here are revised SBI's tenor-wise MCLR, to be effective from August 10:

Tenor Existing MCLR (In %) Revised MCLR (In %) Over night 8.05 7.9 One Month 8.05 7.9 Three Month 8.1 7.95 Six Month 8.25 8.1 One Year 8.4 8.25 Two Years 8.5 8.35 Three Years 8.6 8.45

(As mentioned on SBI's website- sbi.co.in)

The announcement by SBI came after the Reserve Bank of India's Monetary Policy Committee (MPC) cut the repo rate by 35 basis points or 0.35 per cent to 5.40 per cent, the lowest in over nine years. The repo rate was slashed for the fourth consecutive time by the MPC. Repo rate is the interest rate at which the RBI lends money to commercial banks.

Meanwhile, SBI offers several types of home loan products such as regular home loan, flexipay home loan, privilege home loan, shaurya home loan, pre-approved home loan, realty home loan and bridge home loan. Under regular SBI home loan, interest rates for women are slightly lower than that for others.