Under the pressure of inflation, banks have also started increasing the interest rates of their loans. Two giant banks of the public and private sector increased their interest rates on Monday. Customers taking loans from SBI and Axis Bank will now have to pay the increased EMI.
New Delhi. SBI, the largest public sector bank, has made its loans expensive. The bank said on Monday that the interest rates linked to the internal benchmark have been increased by 0.10 percent. The bank has said that the new interest rates will be considered effective from April 15. Private sector Axis Bank has also increased its interest rates by 0.05 percent.
SBI said in the morning that it has increased the Marginal Cost of Lending Rate (MCLR) by 10 basis points or 0.10 percent for all tenor loans, which has come into effect from April 15, 2022. After this move, all types of loans of the bank, home, auto and other loans have also become expensive. However, this will not have any impact on such loans which are linked to external benchmarks like repo rate.
Now the interest rate reached
According to the SBI website, the interest rates for one-day, month and three-month loans have increased to 6.75 per cent, from 6.65 per cent earlier.
Similarly, the MCLR for one-year loans has been increased from 7 per cent to 7.10 per cent. The MCLR for six-month loans has been increased from 6.95 per cent to 7.05 per cent.
The MCLR on two-year loans has also been increased by 10 basis points to 7.30 percent, while three-year loans will now be available at an initial interest rate of 7.40 percent.
Axis Bank customers also affected
Private sector Axis Bank has also made its loan expensive. The bank has increased its MCLR by 0.05 percent and the new rates have come into effect from April 18. MCLR is the standard for fixing interest rates on the basis of internal expenditure and cost of any bank, whereas now most banks disburse loans linked to repo rate. Any change in this happens only when RBI changes the repo rate.
Understand how the EMI burden will increase in this way
If someone has taken a loan of Rs 20 lakh from SBI for 20 years and is paying 7 percent interest on it, then an EMI of Rs 15,506 will come. Now this loan has increased to 7.10 percent interest rate, so the EMI for the same amount and same tenure will increase to Rs 15,626. That is, every year the burden of Rs 1,440 will increase as EMI.
