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New Delhi: The State Bank of India (SBI) is set to hike its marginal cost of lending rate (MCLR) on loans by 10 basis points or 0.10 per cent from today, June 15. As per SBI’s website, for a tenor of one year, the lender has decided to increase MCLR to 7.50 per cent from the current 7.40 per cent.
The MCLR will be hiked from 7.35 per cent to 7.45 per cent for the six-month tenor. Lending rates for two years tenor have been increased from 7.60 per cent to 7.70 per cent, while for three years tenor, it will go up from 7.7 per cent to 7.8 per cent.
What is MCLR and how will hike impact retail borrowers
MCLR is the minimum lending rate below which banks are not allowed to lend. Banks revise their MCLR rate every month depending on the market conditions. The marginal cost of lending rate is different for various tenors ranging from overnight to three years. MCLR is derived based on various components like the marginal cost of funds, Cash Reserve Ratio (CRR), operating costs, and Tenure Premium. The hike in MCLR means that retail loans for homes, cars, or personal could go higher. It will also affect borrower’s Equated Monthly Installments (EMIs).
SBI’s home loans, auto loans interest rates
SBI’s home loan rates range from 7.05% to 7.55% depending upon the CIBIL score. Now depending on the credit score, the risk premium of the borrower will be charged. This means a borrower with a credit score of more than 800 will now pay a minimum rate of 7.55 percent under the regular home loans. The bank’s auto loans vary from 7.45% to 8.15% interest rate
What is MCLR and how will hike impact retail borrowers
MCLR is the minimum lending rate below which banks are not allowed to lend. Banks revise their MCLR rate every month depending on the market conditions. The marginal cost of lending rate is different for various tenors ranging from overnight to three years. MCLR is derived based on various components like the marginal cost of funds, Cash Reserve Ratio (CRR), operating costs, and Tenure Premium. The hike in MCLR means that retail loans for homes, cars, or personal could go higher. It will also affect borrower’s Equated Monthly Installments (EMIs).
SBI’s home loans, auto loans interest rates
SBI’s home loan rates range from 7.05% to 7.55% depending upon the CIBIL score. Now depending on the credit score, the risk premium of the borrower will be charged. This means a borrower with a credit score of more than 800 will now pay a minimum rate of 7.55 percent under the regular home loans. The bank’s auto loans vary from 7.45% to 8.15% interest rate
