Country India’s largest lender State Bank of India has increased the ‘marginal cost of funds-based lending rate’ (MCLR) by 0.1 percent for all tenures. This decision of the State Bank of India has made most consumer loans expensive. The country’s largest public sector bank has increased interest rates for the third consecutive time. According to information from the website of the State Bank of India, the standard MCLR for a period of one year has now been increased to 8.95 percent, which was earlier 8.85 percent.
Customers will have to pay more EMI than before
Let us tell you that MCLR is the minimum interest rate below which banks cannot give loans and MCLR also reflects the trend of borrowing cost of banks. Apart from this, it is used in the valuation of most consumer loans like motor vehicle loans, home loans and personal loans. With this increase, customers taking loans from State Bank of India will now have to pay more EMI than before.
Increase in interest rates across all tenures
After the latest hike, State Bank of India will charge customers 9.10 percent interest for 3 years and 9.05 percent for two years. Apart from this, interest rates for one month, three months and six months will be in the range of 8.45 to 8.85 percent.
New interest rates have been implemented from August 15
Apart from this, the MCLR for the overnight period offered by the bank has been increased from 8.10 percent to 8.20 percent. The new interest rates have been implemented from August 15, 2024. This increase in interest rates has been done at a time when just a few days ago, the Reserve Bank of India (RBI) had kept the repo rate unchanged at 6.5 percent for the ninth consecutive time earlier this month.
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