Are you a SBI customer? So glad you got news of happiness State Bank of India (SBI) has reduced the loan rate (Marginal Coast Base Lending Rate or MCLR) for the first time in five months to 5 basis points (BPS). Thus, the new one-year MCLR has now become 7.95%. This was before 8 percent. Home loan interest rates have been hiked by 8.30 per cent since November 1 and the auto loan has been reduced to 7.70 per cent. Bank and finance institutions are continuously reducing interest rates. He also reduced the interest rates on loan in a very quick time during the demonnisation period. If you are paying a fixed rate loan, you can transfer it to a MCL-linked loan, which is likely to save millions of rupees in the future. Transfer to a Cheaper Loan All new floating rate bank loans (floating rate bank loans) with effect from 1st April, 1016 have joined the MCLR. If you are not happy with the interest rate of your loan then you have an option to transfer to a MCL-linked loan. This loan restores interest rates on their own according to RBI's decrease in rates. For example, you can reset your rate every six months. MCRR has proven to be beneficial for customers, due to reduced interest rates. You can also go to your bank to get the best deals and go to another bank and give information about MCL-linked loan. If you shift the loan in it you will have to pay the transfer and loan processing charge. So you should see that these costs are not more than the savings you make on your interest. If your loan is in an NBFC you can find a cheap loan from the outside or compare the different options available online.