SBI Loan Rates: State Bank loan becomes expensive!
SBI Loan Interest Rates 2024: State Bank of India has increased the interest rates on loans by 10 basis points (bps). Due to this move of SBI, the EMI of loans like home loans, and auto loans will increase.
SBI Loan Interest Rates July 2024: Bad news for those who take loans from the State Bank of India (SBI). SBI has increased its marginal cost of funds-based lending rate (MCLR) by up to 10 basis points (bps) on select periods. According to the SBI website, the new rates will be effective from July 15, 2024. This decision means that most consumer loans (such as auto or home loans) will become expensive.
SBI's latest loan interest rates
SBI has increased the one-month MCLR benchmark rate by 5 basis points to 8.35%. The three-month MCLR benchmark rate has been increased by 10 bps to 8.40%. The bank has increased MCLR rates by 10 bps for six-month, one-year, and two-year tenures, taking them to 8.75%, 8.85%, and 8.95%, respectively. The three-year MCLR has been increased by 5 bps to 9%.
Duration Previous MCLR (in %) Revised MCLR (in %), effective July 15
Overnight 8.1 8.1
one month 8.3 8.35
three months 8.3 8.4
Six Months 8.65 8.75
one year 8.75 8.85
two years 8.85 8.95
three years 8.95 9
How much impact will it have on the EMI of the loan?
Most retail loans like home and auto loans are linked to MCLR rates. This means that borrowers will see their EMIs increase. If someone has taken a home loan linked to one year MCLR and the reset period is near, then the interest rates will increase by 10 bps. Suppose, you have taken a home loan of Rs 50 lakh which is linked to 1 year MCLR. Till now the interest rate on it was 8.75%, after the new MCLR it will become 8.85%.
What is MCLR?
The marginal cost of funds-based lending rate (MCLR) is the minimum lending rate below which a bank is not allowed to lend. In June too, SBI had increased MCLR by 10 bps on select tenures.
Information about the State Bank of India
State Bank of India (SBI) is the largest bank in India. Its assets are over Rs 61 trillion. SBI serves over 50 crore customers through its vast network of over 22,500 branches, 63,580 ATMs/ADWMs, and 82,900 BC outlets. SBI is a Fortune 500 company headquartered in Mumbai.