State Bank of India has increased the interest rate by 0.1 percent. After this increase, now the EMI of the people will also increase.
New Delhi: The country’s largest bank State Bank of India (SBI) has increased its marginal cost based loan rate (MCLR) by 10 basis points (bps) i.e. 0.1 percent. This move will increase the EMI for the borrowers. Along with this, other banks are also likely to revise the lending rate in the coming days.
After this decision of SBI, the EMI of those who have taken loan on MCLR will increase. However, for those who have taken loans based on other parameters, their EMIs will not be affected.
SBI’s EBLR (External Standard Based Lending Rate) is 6.65 percent, while the Repo Linked Lending Rate (RLLR) is 6.25 percent. This rate is effective from April 1. Banks add credit risk premium (CRP) to EBLR and RLLR while granting any type of loan including home and auto loans.
According to the information given on SBI’s website, the revised MCLR rate is effective from April 15. With this amendment, the one-year MCLR has increased from 7 per cent to 7.10 per cent.
Overnight, one-month and three-month MCLR increased by 10 bps to 6.75 per cent, while six-month MCLR increased to 7.05 per cent. Most of the loans are linked to the one-year MCLR rate. Similarly, the two-year MCLR increased by 0.1 percent to 7.30 percent and the three-year MCLR increased by 0.1 percent to 7.40 percent.
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