SBI Hikes MCLR: SBI loan became expensive from today, the bank increased the interest rate by 0.1%

SBI MCLR Hikes: State Bank of India (SBI) loan has become expensive today. The bank has increased the lending rate (MCLR) by 10 basis points i.e. 0.1 percent. A few days after the Reserve Bank of India (RBI) kept the interest rate decisions stable in the monetary committee meeting, SBI has changed the lending rates. Due to this move of SBI, the EMI of all types of loans linked to MCLR will increase. This means that now you will have to pay more EMI on the loan every month than before. SBI’s new interest rates have come into effect from today i.e. 15 June. The bank has increased the lending rate by 0.1 percent for loans of all tenures. The interest rates of home loans, car loans and personal loans are decided on the basis of MCLR.

The bank increased MCLR by 0.1% across all tenures

According to the official website of SBI, the lending rate for a loan with a tenure of 2 years has been fixed at 8.85 and for a loan with a tenure of 3 years, the lending rate has been fixed at 8.95. Earlier, the MCLR for a tenure of two years was 8.75 and for a tenure of three years, the MCLR was 8.85.

SBI has also increased the MCLR of one month and three months by 0.1 percent. With this increase, the MCLR of both the periods has become 8.30 percent. Earlier, the MCLR of one month and three months was at 8.20. The bank has increased the MCLR of six months and one year by 0.1 percent. Due to which the MCLR of the same period has become 8.65 and 8.75 respectively. The country’s largest government bank has also changed the overnight MCLR i.e. one day MCLR at the same rate.

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will have an impact on customers

When any bank changes its lending rate (MCLR), it directly affects the customers of the concerned bank. When the MCLR is increased, the home loan, car loan, personal loan of the concerned bank becomes expensive. SBI has increased the MCLR of different periods today. Due to which the bank’s loans have become expensive i.e. Now customers will get loans from SBI at higher rates.MCLR is the minimum interest rate below which banks cannot lend and it reflects the trend in the borrowing cost of banks. It was introduced in 2016.

Loan borrowers will have to wait for a long time for any reduction in higher interest rates as the RBI decided to keep the repo rate steady at 6.5 percent in the recent monetary policy committee meeting. This is the eighth consecutive meeting in which the central bank has maintained the current rate.

In 2019, RBI introduced External Benchmark Linked Rate (EBLR) to further increase the speed of monetary policy transmission. Currently, all retail loans are linked to EBLR. EBLR is linked to the repo rate. Any change in the repo rate is immediately reflected in the loans linked to EBLR. Banks review interest rates under the MCLR regime on a pre-announced date every month.