New Delhi: The country’s largest bank State Bank of India (SBI) has increased its marginal cost of funds based lending rate (MCLR) by 10 basis points, taking steps towards increasing the EMI for borrowers. The revised MCLR will be effective from July 15, 2022, SBI said in its website.
SBI has mentioned According to information posted on SBI’s website, it has increased its MCLR by 10 basis points (bps) or 0.1 per cent across all tenures.
SBI Marginal Cost of Funds Based Lending Rate (MCLR) wef 15.07.2022. The period-wise MCLR with effect from July 15, 2022 is as follows:
Tenure Existing MCLR (In Percentage)
7.05 pm
one month 7.05
three months 7.05
six months 7.35
one year 7.40
two years 7.60
three years 7.70
Revised MCLR (in Percentage) with effect from 15.07.2022
Overnight: 7.15
one month: 7.15
three months: 7.15
six months: 7.45
One year: 7.50
Two years: 7.70
three years: 7.80
with increase, EMI of those borrowers will increase Not for those who have taken loans at MCLR, whose loans are linked to other benchmarks. Most of the loans are linked to the one-year MCLR rate.
What is Marginal Cost of Funds Based Lending Rate (MCLR)?
From April 2016, RBI has implemented MCLR for bank lending. The marginal cost of funds based lending rate (MCLR) is the minimum lending rate below which a bank is not allowed to lend to borrowers.