SBI hiked lending rates from today. Loan EMI will increase

The bank has decided to increase the MCLR to 7.50 per cent from the current 7.40 per cent for a period of one year. state Bank of Indiawebsite of.

MCLR will be increased from 7.35 per cent to 7.45 per cent for a period of six months.

The MCLR will be increased from 7.60 per cent to 7.70 per cent over a period of two years. It will be increased from 7.7 per cent to 7.8 per cent over a period of three years.

What will be the impact of hike in MCLR on retail borrowers

This means that retail loans for homes, cars or personal may be higher, and this will affect your Equated Monthly Installments (EMIs) as well.

SBI Home Loan, Auto Loan Interest Rates

SBI home loan rates vary from 7.05% to 7.55% depending on the CIBIL score. SBI auto loan varies from 7.45% to 8.15% interest rate.

What is MCLR?

MCLR is the minimum lending rate below which banks are not allowed to lend. Every month, banks revise their MCLR rate based on market conditions. MCLR is different for different tenors ranging from overnight to three years. It is arrived at on the basis of components such as marginal cost of fund, operating cost, cash reserve ratio (CRR), and tenure premium.

Other banks also increased MCLR rates in July

Bank Of Baroda Raised the benchmark Marginal Cost of Funds by 10-15 basis points based on the Lending Rate (MCLR) over certain tenors. The new rates are effective from July 12.

private lender, IDFC First Bank Increased the benchmark lending rate by 10 to 15 basis points across different tenors. The new rates of Marginal Cost of Funds Based Lending Rate (MCLR) have come into effect from July 8, 2022.

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