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The country’s largest bank, SBI, gave a surprise! Home, personal and car loans have become expensive, now you will have to pay so much money

Sagar Patel

By Sagar Patel

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FD Interest May Decrease

If you also have an account with State Bank of India or there is a loan in your name with the bank, this news may surprise you. In fact, the country’s largest government bank has surprised millions of customers, so their pockets will be heavier. The SBI has increased the interest rates on its loans. This means that now it will cost you a little more to get a car, a home or a personal loan.

SBI has increased its margin cost fund-based lending rate (MCLR) by 0.10 per cent. MCLR is the minimum interest rate below which the bank cannot provide a loan. If you apply for a loan for one year, you previously had to pay an interest rate of 8.65%. But now this rate has increased to 8.75%.

These are the new interest rates

If we talk about MCLR for different periods, it will now range between 8.10% and 8.95%. The overnight MCLR has increased from 8% to 8.10%. At the same time, for one month and three months this rate has increased from 8.20% to 8.30%. The MCLR for six months has increased from 8.45% to 8.55%. This rate has increased from 8.55% to 8.65% for one year and from 8.85% to 8.75% for two years.

However, it is a relief that the SBI has not made any change in its EBLR rates. EBLR stands for “External Reference Lending Rate”. Some SBI home loans are linked to EBLR. The SBI’s EBLR remains at 9.15%, which is made up of the repo rate (6.50%) and the spread (2.65%). SBI home loan interest rates range between 8.50% and 9.65% and depend on your CIBIL score.

SBI Fixed Processing Fees

Apart from this, SBI has also fixed its processing fee for the loan, which is 0.35% of the loan amount. GST will also apply. The SBI base rate remains 10.40%, applicable from June 15, 2023.

BPLR i.e. benchmark prime lending rate has been changed to 15.15% per annum, applicable from June 15, 2024. SBI also recently changed the interest rates on fixed deposits (FDs). This change is different for FDs of less and more than Rs 3 crore.

We will have to wait to get a cheap loan.

In such a situation, if you are thinking of applying for a loan, you may have to wait for some time until the interest rates are reduced. The Reserve Bank of India decided in its last meeting to keep the repo rate at just 6.5%. It is believed that even in the next meeting to be held in August, the RBI will not make any change in the repo rate. But the repo rate may go down in October or December.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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