Mumbai: Here is a good news for home loan borrowers from State Bank of India (SBI).

SBI, on Monday, announced reduction of 30 basis points for home loans to existing customers whose loans are linked to base rates. The bank lowered the base rate - the floor rate below which the bank does not give loans to prime customers - by 30 basis points to 8.65%.

The reduction in rates comes as a major relief to many SBI customers. Almost half of SBI long term retail borrowers particularly students and the home loan borrowers have their lending rates linked to base rate. The other half of the retail borrowers have migrated to MCLR or marginal cost of lending rates system where in the lending rates are locked for a term of one year and rates are revised at the end of each year.