SBI Hikes Lending Rates From Today
The State Bank of India (SBI) has decided to raise its loan MCLR by 10 basis points, or 0.10 percent. The new lending rates go into effect today, July 15.
According to the State Bank of India website, the bank has decided to raise the one-year MCLR to 7.50% from the current 7.40%.
The MCLR for the six-month tenor will be increased from 7.35 to 7.45 percent.
The MCLR on a two-year tenor will be raised from 7.60% to 7.70%. It will be increased from 7.7% to 7.8% over three years.
How the MCLR increase will affect retail borrowers
It means that retail loans for homes, cars, or personal use may increase, as well as your Equated Monthly Installments (EMIs).
SBI home loan and auto loan interest rates
SBI’s home loan rates range from 7.05 percent to 7.55 percent, depending on the CIBIL score. SBI auto loans have interest rates ranging from 7.45 percent to 8.15 percent.
What is MCLR?
The minimum lending rate (MCLR) is the rate at which banks are not permitted to lend. Banks revise their MCLR rate monthly based on market conditions. MCLR varies depending on the tenor, ranging from overnight to three years. It is calculated using factors such as the marginal cost of funds, operating costs, the Cash Reserve Ratio (CRR), and the Tenure Premium.
In July, other banks raised their MCLR rates
Bank of Baroda increased the benchmark Marginal Cost of Funds Based on Lending Rate (MCLR) by 10-15 basis points on certain tenures. The new rates take effect on July 12.
IDFC First Bank, a private lender, raised its benchmark lending rate by 10 to 15 basis points on various tenures. The new rates of the Marginal Cost of Funds-based Lending Rate (MCLR) will be implemented on July 8, 2022.
 has decided to raise its loan MCLR by 10 basis points, or 0.10 percent. The new lending rates go into effect today, July 15.){kind=link}