Pay More For SBI Loan EMI: Lending Rates Increased By 10 BPS By SBI


Sheetal Bhalerao

Sheetal Bhalerao

Feb 17, 2023


The latest development from RBI indicates that borrowing money will become more costlier from here on.

Pay More For SBI Loan EMI: Lending Rates Increased By 10 BPS By SBI

RBI Hiking In MCLR

State Bank of India (SBI), the country’s largest lender, has hiked the marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps) across tenures.

This update makes most consumer loans such as auto or home loans costlier for borrowers.

These new rates are effective from 15 February, as per the information provided on SBI’s website.

SBI said that overnight MCLR rate has been revised upward by 10 bps to 7.95 per cent from 7.85 per cent, while that of one month tenure has been hiked by 10 bps to 8.10 per cent from 8.00 per cent.

During January, the three-month MCLR was raised to 8.10 percent from 8.00 percent.

On the other hand, the six-month MCLR stands revised at 8.40 percent from 8.30 percent earlier.

The new rate for one-year maturity will be increased to 8.50 percent against 8.40 percent according to the bank.

The two-year maturity, MCLR has also been hiked to 8.60 percent from 8.50 percent.

Similarly, the three-year tenure has been raised to 8.70 percent from 8.60 percent.
Here, the basic minimum rate at which a bank can give consumers loans is known as the marginal cost of funds-based lending rate or MCLR.

Back in 2016, the Reserve Bank of India (RBI) established MCLR for the basis of determining the interest rates of different types of loans.

Later on, the RBI’s monetary policy committee raised the repo rate on 8 February, 2023 in an effort to tame inflation.

In its most recent statement, the central bank said that it has raised the repo rate by 25 bps to 6.50%.
How Does This Affect?

This will affect the Borrowers’ EMI or Equated Monthly Installments outgo as it will get expensive for those who take loans against the MCLR.

Notably, there is a reset-period for MCLR-based loans, after which the rates get revised for the borrower.

Several banks including Bank of Baroda, Bank of India, Punjab National Bank have increased their lending rates following the RBI rate hike ultimately affecting their customers’ EMIs.


Sheetal Bhalerao
Sheetal Bhalerao
  • 197 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  Contents iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online