Sbi increased MCLR
State Bank of India (SBI) has given a big surprise to customers. The bank has increased its marginal cost of funds based lending (MCLR) rates by 10 basis points i.e. 0.10 per cent on select tenors. Due to this, loans including personal and car loans will become costly. Also, people will now have to pay higher EMIs. The new rates came into effect from July 15, 2024 i.e. Monday.
SBI has increased MCLR rates by 0.10 per cent for six-month, one-year and two-year tenures, making them 8.75 per cent, 8.85 per cent and 8.95 per cent respectively. At the same time, three-year MCLR has been increased by 5 basis points to 9 per cent. Earlier in June, the bank had increased the MCLR rate by 10 basis points on select tenures.
What is MCLR?
MCLR stands for Marginal Cost of Funds based lending rate. This is the minimum interest rate below which banks cannot lend to anyone. MCLR has a direct impact on the EMI of your personal and car loan. The new loan becomes expensive due to the increase in MCLR. Also, the EMI of your existing loan also increases.
No changes in SBI EBLR
There has been no change in the SBI External Reference Lending Rates (EBLR). It has remained at 9.15%. All home loans are linked to external benchmark interest rates and the SBI home loan interest rates range between 8.50% and 9.65%. This varies according to the CIBIL score.
No change in repo rate
Without making any changes to the repo rate, the Reserve Bank of India has kept it at 6.5 per cent from February 2023. For the eighth time, the central bank has kept it stable. This decision was taken at the meeting of the Monetary Policy Committee (MPC) of the RBI.
