Mumbai: The largest public sector bank in the country, State Bank of India (SBI) has hiked the benchmark marginal cost of funds-based lending rates (MCLR). The lending rates on select tenures were hiked by up to 5-10 basis points. After the hike the equated monthly instalments (EMIs) of all retail loans including car loans, education loans, personal loans and home loans will go up.
The new rates are 8.20% for a 1-month tenure, 8.20% for a 3-month tenure, 8.55% for a 6-month tenure, 8.65% for a 1-year tenure, 8.75% for a 2-year tenure, and 8.85% for a 3-year tenure. This change also affects other tenures, with the exception of the overnight tenure, which remains unchanged at 8.00%.
Also Read: Forex Market: Indian rupee trades flat against US dollar
SBI took this decision as the monetary policy committee (MPC) of Reserve Bank of India (RBI) led by RBI Governor Shaktikanta Das decided to maintain the repo rate at 6.5% for the fifth consecutive time.
The Marginal Cost of Funds Based Lending Rate (MCLR) serves as a fixed lending rate that banks use to determine the interest rates for car loans, home loans, education loans, and more MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan. Any changes in MCLR rates by the bank directly affect the interest rates and Equated Monthly Installments (EMIs) for customers.
Post Your Comments