As per the latest information on SBI website, the lending rates will now range between 8 per cent and 8.75 per cent.
India’s largest lender State Bank of India (SBI) has hiked the marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps), which is effective from Saturday (July 15, 2023). The MCLR can be defined as the lowest lending rate at which a bank can offer loans to loan seekers.
As per the latest information on SBI website, the lending rates will now range between 8 per cent and 8.75 per cent. The last revision was made in March 2023. On March 15, SBI had raised the benchmark prime lending rate (BPLR) by 70 basis points.
From July 15, the overnight MCLR rate is raised by 5 bps to 8 per cent from 7.90 per cent, while that of one month and three month tenure is 8.15 per cent from 8.10 per cent. The six-month MCLR stands at 8.45 per cent, up by 5 bps. The move will lead to increase in equated monthly installment (EMI) for those who have availed of loans on MCLR.
|Tenor||Revised MCLR (In %)|
Source: SBI website.
BI has kept its external benchmark lending rates (EBLR) remain unchanged at 9.15 per cent + CRP + BSP and RLLR at 8.75 per cent + CRP. The rates have been static since February 15, 2023.
SBI base rate is at 10.10 per cent effective from June 15, 2023, while Benchmark Prime Lending Rate (BPLR) revised as 14.85 per cent per year effective from June 15, 2023.
The decision comes after the Reserve Bank of India’s (RBI) decided to keep the repo rate unchanged at 6.50 per cent last month. The repo rate is the rate at which the central bank lends short-term funds to commercial banks.
While announcing the repo rate pause in June 2023, Governor Shaktikanta Das signalled the central bank’s readiness to act in keeping with the incoming data.
Home loan calculation
For a regular home loan, besides the interest rate, SBI charges 0.35 per cent to 0.40 per cent of the loan.
Thereafter, GST is also applicable. The minimum charge is Rs2,000 plus applicable GST and maximum of Rs. 10,000 plus applicable GST.