State Bank of India, the country’s largest public lender, has announced an increase across its various lending benchmarks, including the repo linked loan rate (RLLR), the external benchmark-based lending rate (EBLR) and the marginal cost of funds-based lending rate (MCLR), in the range of 20 to 50 basis points.
The move by SBI, which comes days after the RBI announced a 50-basis-point hike in the repo rate, would not only increase the EMI burden for existing customers but also increase the cost of borrowing for new home loan applicants.
Since may, the RBI has increased the repo rate, at which it lends funds to scheduled banks in India, by a cumulative 140 basis points. One basis point equals to one-hundredth part of a percentage point.
SBI repo-rate linked new rates
With the 50-basis-point hike in rates by the public lender that comes into effect from august 15, 20222, SBI repo rate linked home loan is now priced at 7.65% as against the earlier 7.15%.
However, borrowers have to shell out more than the basic interest rate since SBI charges a credit risk premium (CRP) over and above the RLLR.
SBI EBLR new rates
After the 50-basis-point hike on August 15, 2022, SBI’s EBLR now stands at 8.05% as against 7.55 earlier. However, borrowers have to shell out more than the basic interest rate since SBI charges a CRP over and above the EBR.
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SBI MCLR new rates
SBI has also hiked its MCLR across loan tenors by 20 basis points, a move that would also prove detrimental to those applying for other loans like an auto loan. Following is the list of news SBI MCLR rates across various tenors:
1 month MCLR
Old rate: 7.15%
New rate: 7.35%
3-month MCLR
Old rate: 7.15%
New rate: 7.35%
6-month MCLR
Old rates: 7.45%
New rate: 7.65%
1-year MCLR
Old rates: 7.50%
New rate: 7.70%
2-year MCLR
Old rate: 7.70%
New rate: 7.90%
3-year MCLR
Old rates: 7.80%
New rate: 8.00%
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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