Interest rates

SBI is raising lending rates on loans starting today. Check the latest interest rates

New Delhi: The State Bank of India (SBI) is expected to increase its marginal cost of lending rate (MCLR) on lending by 10 basis points or 0.10% from today, June 15. According to the SBI website, for a term of one year, the lender has decided to increase the MCLR to 7.50% from the current 7.40%. The MCLR will be increased from 7.35% to 7.45% for the six-month term. Loan rates for a two-year term have been increased from 7.60% to 7.70%, while for a three-year term they will increase from 7.7% to 7.8%.Also Read – Gold and Silver Prices Continue to Rise, Gold Crosses Rs 52,000 Mark

What is MCLR and how will the hike impact retail borrowers

The MCLR is the minimum lending rate below which banks are not allowed to lend. Banks revise their MCLR rate every month based on market conditions. The marginal cost of lending rate is different for different durations ranging from overnight to three years. MCLR is derived from various components such as marginal cost of funds, cash reserve ratio (CRR), operating costs and occupancy premium. Read also – SBI customer alert! Soon use WhatsApp for banking services; Details here

The rise in the MCLR means that personal loans for homes, cars or individuals could increase. This will also affect the borrower’s equivalent monthly installments (EMI). Also Read – Deposit Once, Get Fixed Income Every Month: All About SBI Annuity Plan 2022

SBI home loans, car loan interest rates

SBI home loan rates range from 7.05% to 7.55% depending on the CIBIL score. Now, depending on the credit score, the risk premium of the borrower will be charged. This means that a borrower with a credit score of over 800 will now pay a minimum rate of 7.55% on ordinary home loans. The bank’s auto loans range from 7.45% to 8.15% interest rate.