EMIs to go up as SBI hikes lending rate by 10 basis points across tenures
The change will be effective June 15 and will result in higher EMIs for borrowers with loans linked to MCLR.
The State Bank of India (SBI) increased its marginal cost of funds-based lending rate (MCLR) by 10 basis points (0.1%) across all tenures. The change will be effective June 15 and will result in higher EMIs for borrowers with loans linked to MCLR. MCLR is the minimum interest rates below which banks cannot lend and reflects the trends in banks’ cost of borrowing. It was introduced in 2016.
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As per the changes- the hike for one-year MCLR is to 8.75% from 8.65%, the overnight MCLR go up to 8.10% from 8.00% and the one-month and three-month MCLR increase to 8.30% from 8.20%.
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Six-month MCLR is now at 8.65%, up from 8.55% and the two-year MCLR has been raised to 8.85% from 8.75% while the three-year MCLR is now 8.95%, up from 8.85%. Most retail loans, including home and auto loans, are linked to the one-year MCLR rate.
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SBI also announced hat it has raised $100 million through bonds to support business growth. This comes as RBI’s Monetary Policy Committee (MPC) left the repo rate – key policy rate – unchanged at 6.5 per cent on concerns over rise in food inflation.
