State Bank of India has increased the marginal cost lending rate (MCLR) on loans by 10 basis points. After this increase, now it will become costly for the customers of the bank to take home loan, car loan and other types of loan, customers will have to pay more EMI on any type of loan. This increased interest rate will be effective from July 15, 2022. On the other hand, loans linked to external benchmarks have been kept unchanged.
According to the notice issued on the website of State Bank of India, the one-year MCLR rate has increased from 7.40 percent to 7.50 percent. Rates have been increased from 7.05 per cent to 7.15 per cent for overnight, one month and three months. The MCLR for a period of six months has been increased from 7.35 per cent to 7.45 per cent, the two-year and three-year MCLR rates to 7.7 per cent and 7.8 per cent, respectively.
SBI hike rates
Rates were increased on June 15
Significantly, ever since the RBI hiked the key rates, SBI has been gradually increasing its MCLR on loans from April 2022. Earlier, SBI had increased the MCLR by 0.20 per cent with effect from June 15, 2022. According to the SBI website, the bank’s EBLR is 7.55 per cent + CRP. RLLR is 7.15%+CRP.
How much interest will have to be paid on 800 credit score
The risk premium will be charged on the basis of credit score. This means a borrower with a credit score above 800 will now pay a minimum rate of 7.55 per cent under a regular home loan.
what will be the effect on you
Explain that under MCLR, banks have to declare interest rates for different periods every month. After this increase, now the EMI of the existing borrowers will increase and it will become expensive for the new borrowers to take the loan.