State Bank of India (SBI) has increased its marginal cost of lending rates (MCLR) by 10 basis points or 0.1% for all tenures from June 15. Due to this move of SBI, the EMI of all types of loans linked to MCLR will increase.
The Reserve Bank of India has kept the repo rate unchanged, but many banks have started increasing the interest on loans. The State Bank of India has once again increased the interest on home loans. This means that now you will have to pay more EMI on your loan. SBI has announced the increase in interest a few days after the RBI’s monetary policy meeting.
State Bank of India (SBI) has increased its marginal cost of lending rates (MCLR) by 10 basis points or 0.1% for all tenures from June 15. Due to this move of SBI, the EMI of all types of loans linked to MCLR will increase. This means that now you will have to pay more EMI on the loan every month than before.
What is the MCLR for which tenure?
With the increase by SBI, one year MCLR has increased from 8.65% to 8.75%, overnight MCLR has increased from 8.00% to 8.10% and one month and three month MCLR have both increased from 8.20% to 8.30%. Six month MCLR has now increased from 8.55% to 8.65%. Apart from this, two year MCLR has increased from 8.75% to 8.85% and three year MCLR has now increased from 8.85% to 8.95%.
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There is no impact on loans linked to repo rate
Let us tell you that most retail loans including home and auto loans are linked to one year MCLR rate. The increase in MCLR does not affect the customers taking loans linked to external benchmarks like RBI repo rate or treasury bill yield. From October 2019, it has become mandatory for banks including SBI to link new loans to these external benchmarks.
SBI raises $100 million through bonds
SBI also announced on Friday that it has raised $100 million (about Rs 830 crore) through bonds to support business growth. Floating rate notes with a maturity of three years and a coupon of Secured Overnight Financing Rate (SOFR) +95 basis points per annum will be issued on June 20, 2024 through SBI’s London branch.
