Mumbai, Jun 8 (PTI) The country's largest lender State Bank of India (SBI) on Monday announced it will reduce marginal cost of fund based lending rate (MCLR) by 25 basis points across all tenors from Wednesday.

The one year MCLR has been revised to 7 per cent from 7.25 per cent, the bank said in a release.

Also Read | PVR Cinemas Reports Net Loss of Rs 76 Crore in January to March Quarter.

This is the thirteenth consecutive reduction in the bank's MCLR.

The bank also announced to reduce its external benchmark linked lending rate (EBR) as well as repo linked lending rate (RLLR) by 40 basis points from July 1.

Also Read | OnePlus' Affordable Smart TV Launching in India on July 2; Confirms Founder & CEO Pete Lau.

While EBR has been reduced to 6.65 per cent per annum from 7.05 per cent per annum, RLLR reduced to 6.25 per cent from 6.65 per cent, it said.

"Consequently, EMIs on eligible home loan accounts linked to MCLR will get cheaper by nearly Rs 421 and those linked to EBR/RLLR will get cheaper by around Rs 660, for a 30 years loan of Rs 25 lakh," the bank said in the release.

The cut in EBR and RLLR by the bank comes after the Reserve Bank of India (RBI) on May 22 had cut repo rate by 40 basis points to 4 per cent.

Some of the banks like Punjab National Bank (PNB), Bank of India (BOI) and UCO Bank have already slashed their lending rates linked to the repo rate and MCLR rates.

SBI has also reduced its base rate by 75 basis points, from 8.15 per cent to 7.40 per cent, effective June 10.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)