SBI Hikes MCLR By Up To 10 Bps Across Most Tenures
State Bank of India raises marginal cost of lending rates, impacting EMIs on personal and auto loans, effective 15 July
The State Bank of India (SBI) has increased its marginal cost of lending rates (MCLR) by 5 to 10 basis points (bps) across most tenures, effective from today, 15 July. This adjustment sees the MCLR on 1-year loan tenures rise by 10 bps to 8.85 per cent. Similarly, the MCLR for 3-month, 6-month, and 2-year loan tenures has been raised by 10 bps each to 8.4 per cent, 8.75 per cent, and 8.95 per cent, respectively.
The revised MCLR rates from SBI are as follows:
Tenure | MCLR
Overnight 8.10 per cent
1-month 8.35 per cent
3-month 8.40 per cent
6-month 8.75 per cent
1-year 8.85 per cent
2-year 8.95 per cent
3-year 9.00 per cent
MCLR, the minimum interest rate below which a bank cannot lend, was introduced in April 2016. The recent hike is expected to impact loans and equated monthly instalments (EMIs) for customers, with most corporate loans also being affected.
Loans such as personal or auto loans linked to MCLR will see a rise in EMIs. However, home loans tied to the repo rate will remain unaffected. The repo rate has been unchanged at 6.5 per cent since February 2023, following the decision of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) by a 4:2 majority to maintain it. The three-day RBI MPC meeting, chaired by RBI Governor Shaktikanta Das, took place from 5 to 7 June.
