SBI Rate Hike: Taking loan from the country’s largest government bank State Bank of India has become expensive. SBI has announced to increase the interest rates on loans from 15th November 2024 i.e. from today. Announcing the latest Margin Cost of Funds Based Lending Rates (MCLR), the bank has increased the interest rates by 5 basis points, which has come into effect from today itself.
How much did the lending rate increase?
State Bank of India has released its new Margin Cost of Funds Based Lending Rates, according to which, the existing MCLR with tenure of three months has been increased from 8.50 percent to 8.55 percent. The six-month MCLR has been increased from 8.85 percent to 8.90 percent and the one-year MCLR has been increased from 8.95 percent to 9 percent. There has been no increase in MCLR for tenures of two years and three years. The MCLR rate for loan for two years is 9.05 percent and for three years is 9.10 percent.
What will be the impact on customers?
State Bank of India has shared information about changes in margin cost of funds based lending rates on its website. On the basis of this rate, banks determine the interest rates on car loans and personal loans. Any change in the Marginal Cost of Lending Rate has a direct impact on the EMI of Home Loan, Car Loan, Education Loan and Personal Loan. Due to SBI’s decision to increase interest rates, now customers will have to pay more EMI than before. Banks decide the interest rates on short term loans like auto loan, personal loan on the basis of marginal cost of lending rate. But the interest rates on long term loans like home loan are decided on the basis of RBI’s policy rate repo rate. When the repo rate increases, home loan interest rates increase and when the repo rate decreases, the interest rates decrease.
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