State Bank of India or SBI, India’s largest lender, increased the marginal cost of money based lending rate or MCLR on loans from today, a move that will make EMIs costlier for borrowers benchmarked against the MCLR. The one-year MCLR is considered important from the point of view of retail loans, as bank’s long-term loans such as home loans are linked to this rate.
The three-month SBI MCLR rate has been increased from 7.15% to 7.35% from overnight. SBI six-month MCLR goes up to 7.45% to 7.65%, one year to 7.7%, 7.5% to two years, 7.7% to 7.9% and three years to 7.8% to 8%.
last month, State Bank Of India The marginal cost of funds-based lending rates had increased by 10 basis points over different periods.
The MCLR came out in April 2016, giving banks a formula to calculate their cost of funding and then reviewing their proposals monthly over different periods. Each bank calculates its MCLR by taking into account factors such as its incremental cost of raising funds (eg, through deposits) and operating expenses, among other factors.
The MCLR was later replaced by an external benchmark linked rate so that the lending rate could directly sync with policy moves.
SBI Latest MCLR Rates
Overnight – 7.35%
One Month – 7.35%
three months – 7.35%
six months – 7.65%
one year – 7.7%
two years – 7.9%
three years – 8%
The Reserve Bank this month sharply hiked the repo rate by 50 basis points, prompting several banks to hike various lending rates on borrowers.
SBI had last week hiked interest rates on retail fixed deposits. After adjustment, the bank increased the interest rates on various tenors and presently interest rates from 2.90% to 5.65% for general public and 3.40% to 6.45% for fixed deposits with maturities ranging from 7 days to 10 years. sending out. senior citizen.
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