SBI raises lending rates by 0.1 percent: Check how your EMIs are set to go up

SBI raises lending rates by 0.1 percent

The State Bank of India, which is the largest lender in the country, has raised its marginal cost of funds-based lending rate by 10 basis points, or 0.1 percent, for all loan terms. This means that borrowers' monthly payments will go up.

This is the second straight hike in a month, raising the cost by 0.2 percent. The revision follows the Reserve Bank's off-cycle rate hike earlier this month. The central bank increased the repo rate, which it uses to lend short-term money to banks, by 0.40 percent to 4.40 percent.

SBI's (State Bank of India) lending rate revision is likely to be followed by other banks in the coming days.

EMIs will rise for borrowers whose loans are based on the MCLR (Marginal Cost of Funds-based Lending Rate), but not for those whose loans are based on other benchmarks.

Effective April 1, SBI's External Benchmark Based Lending Rate (EBLR) is 6.65 percent, while the Repo-Linked Lending Rate (RLLR) is 6.25 percent.

Banks charge a Credit Risk Premium (CRP) in addition to the EBLR and RLLR when making any kind of loan, including housing and auto loans.

According to the information on the SBI website, the increased MCLR rate goes into effect on May 15. With the change, the one-year MCLR has risen to 7.20 percent from 7.10 percent before.

The overnight, one-month, and three-month MCLRs all climbed by 10 basis points to 6.85 percent, while the six-month MCLR jumped to 7.15 percent.

The majority of loans are tied to the one-year MCLR rate. Simultaneously, the two-year MCLR climbed by 0.1 percent to 7.40 percent, while the three-year MCLR jumped to 7.50 percent.

Following the RBI's rate hike, numerous banks have already hiked interest rates, with more anticipated to follow in the coming days.

Post a Comment

Comments are welcomed and encouraged on Stuffsearth Website, but there are some instances where comments will be edited or deleted as follows:

Comments deemed to be spam or solely promotional in nature will be deleted. Including a link to relevant content is permitted, but comments should be relevant to the post topic.
Comments including profanity will be deleted.
Comments containing language or concepts that could be deemed offensive will be deleted. Note this may include abusive, threatening, pornographic, offensive, misleading or libelous language.
Comments that attack an individual directly will be deleted.
Comments that harass other posters will be deleted. Please be respectful toward other contributors.
Anonymous comments will be deleted. We only accept comments from posters who identify themselves.
The owner of this Website reserves the right to edit or delete any comments submitted to the 'Website's Post/Content' without prior notice. This comment policy is subject to change at any time. If you have any questions about the commenting policy, please let us know by using our 'Contact Us' form .

To Top