New Delhi: The State Bank of India has hiked the lending rate by 5-10 basis points (bps) on most tenures, in the second such hike since mid-June 2024. The country’s largest bank hiked the lending rate for the following tenures by 5-10 basis points:
Tenure
Lending rate
Change
Overnight
8.10%
—
1-month
8.35%
5 bps
3-month
8.40%
10 bps
6-month
8.75%
10 bps
1-year
8.85%
10 bps
2-year
8.95%
10 bps
3-year
9.00%
5 bps
In June 2024, SBI hiked the MCLR on 1-year loan tenure by 10 bos to 7.57 per cent. This was further hiked to 7.85 per cent on July 15, 2024.
What is MCLR?
MCLR is the Marginal Cost of Funds based Lending Rate. This is the lowest rate of interest offered on any loan. A bank cannot lend below this rate. It is indexed to the Reserve Bank of India’s repo rate.
MCLR also factors in:
Operating costs
Deposit rates
Cost of cash reserve ratio
SBI external benchmark lending rate
SBI’s external benchmark lending rate stoof at 9.15 per cent + CRP + BSP.
This rate is the basis for the interest rate on home loans offered by SBI.
The interest rate on SBI home loans falls in the range of 8.50-9.65 per cent depedning on the tenure and the borrower’s credit report offered by CIBIL and other agencies.
SBI base rate
SBI has kept the base rate unchanged at 10.40 per cent since June 2023.
Base rate is the rate determined by a lender after factoring in the average cost of funds.
This rate is determined based on the bank’s operating expenses as well as the cost borne by the bank to maintain its cash reserve ratio.
Base rate is not determined by the repo rate and may be changed by the bank on a quarterly basis.
SBI’s benchmark prime lending rate (BPLR) was revised to 15.15 per cent per annum on June 15, 2024.
The State Bank of India on Monday, July 15, 2024, hiked the lending rate by 5-10 bps on certain tenures. Check revised lending rates. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
