State Bank of India (SBI) has hiked the marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps) with effective from July 15, 2023, according to the SBI website. The MCLR is the lowest interest rate at which a bank can make a loan to a customer.
The MCLR-based rates will now range between 8% and 8.75%. The overnight MCLR rate is raised by 5 bps to 8% from 7.90%, while that of one month and three month tenure is 8.15% from 8.10%. Among others, the six-month MCLR stands at 8.45%, up by 5bps.
The one year MCLR which is linked to many consumer loans is now at 8.55% from 8.50% . For tenure of two years and three years MCLR is 8.65% and 8.75%, respectively.
SBI EBLR/RLLR
SBI external benchmark lending rates (EBLR) remain unchanged at 9.15%+CRP+BSP and RLLR at 8.75%+CRP with effective from February 15, 2023.
Base Rate
SBI base rate is at 10.10% with effective from June 15, 2023
SBI BPLR
Benchmark Prime Lending Rate (BPLR) revised as 14.85% p.a. with effective from June 15, 2023.
What should borrowers do?
Borrowers of home mortgages have very little control on changes in interest rates, but they may at least make sure they are obtaining the best terms possible on their loans. Due to the peak in interest rates, most borrowers would be paying the highest interest rates on their EMIs in the last three years. It would be a smart idea for you to switch to the new EBLR regime if you are an old borrower who has been paying off loans under earlier regimes like the MCLR or base rate. This is so that you may swiftly profit from a decrease in interest rates.
Source By: economictimes
