New Delhi: The largest public sector bank in India, the State Bank of India (SBI) has revised its Marginal Cost of Funds-Based Lending Rate (MCLR) for the period between November 15 and December 15 this year. The lending rates have been increased by the bank by up to 5 basis points (bps) for the tenures of one month, six months and one year. The revised rates came into effect from November 15, 2024.
When it comes to updated MCLR, the overnight and one-month MCLR of SBI remained the same at 8.20 per cent. However, the 3-month MCLR was up to 8.55 per cent from 8.50 per cent. The 6-month MCLR was raised to 8.90 per cent from 8.85 per cent earlier. The 1-year MCLR, mostly associated with auto loans, was revised to 9 per cent from 8.95 per cent. The MCLR for the tenures of 2 years and 3 years remains the same at 9.05 per cent and 9.10 per cent, respectively.
What is MCLR?
The Marginal Cost of Funds-Based Lending Rate or MCLR is the minimum lending rate for banks to lend. Its calculation is based on the marginal cost of funds and acts as a benchmark to determine rates of interest on loans. SBI auto loans are directly associated with the MCLR of tenure of 1 year and the interest rates on such loans depend on the borrower’s CIBIL score. SBI Personal loans are pegged to the 2-year MCLR, currently pegged at 9.05 per cent.
SBI home loans
Those who are looking to secure SBI home loans should note that the bank’s External Benchmark Lending Rate (EBLR) is at 9.15 per cent. EBLR rate is linked to the RBI’s 6.50 per cent repo rate with an additional spread of 2.65 per cent. SBI home loan interest rates will depend on the credit score of the borrower. SBI home loans can be priced at 8.50-9.65 per cent. Since September 15, the base rate of the bank is at 10.40 per cent, while its Benchmark Prime Lending Rate is 15.15 per cent per annum.
The lending rates have been increased by SBI by up to 5 basis points (bps) for the tenures of one month, six months and one year. The revised rates came into effect from November 15, 2024. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
