The State Bank of India (SBI) has raised its marginal cost of lending rates (MCLR) by 5 to 10 basis points (bps) across most tenures, with effect from today, July 15.
Shares of India’s largest public sector bank (PSB), the State Bank Of India are trading 0.97 per cent upper at ₹868.00 as compared to its last closing price.
The SBI MCLR Hikes
- MCLR on overnight loan tenures hiked by 5 bps to 8.10 per cent.
- MCLR on one-month loan tenures hiked by 10 bps to 8.35 per cent.
- MCLR on three-month loan tenures hiked by 10 bps to 8.40 per cent.
- MCLR on six-month loan tenures hiked by 10 bps to 8.75 per cent.
- MCLR on one-year loan tenures hiked by 10 bps to 8.85 per cent.
- MCLR on two-year loan tenures hiked by 10 bps to 8.95 per cent.
- MCLR on three-year loan tenures hiked by 5 bps to 9.00 per cent.
Rates were also hiked less than a month-back around mid-June prior to this, by 10 bps, taking one-year benchmark loans to 8.75 percent.
Impact on Loans, EMIs
The increase is likely to impact loans and equated monthly installments for customers. Most corporate loans will also be impacted.
Notably, EMIs of loans such as personal or auto loans that are linked to MCLR, and will rise, while home loans which are tied to the repo rate will not witness a rise.
Repo rate has remained unchanged. The Reserve Bank of India has maintained it at 6.5 per cent since February 2023. A 4:2 majority of the RBI Monetary Policy Committee (MPC) decided to keep the repo rate unchanged, marking the eighth time the central bank has left rates steady. The three-day RBI MPC meeting, chaired by RBI Governor Shaktikanta Das, was held from June 5 to June 7.
MCLR is the minimum interest rate below which the bank is not supposed to charge. The concept was introduced in April 2016.
