SBI: MCLR is the interest rate below which no bank can give loan. However, this has no effect on fixed rate loans.
New Delhi. SBI has increased the MCLR or Marginal Cost of Funding Based Lending Rate by 0.15 percent (15 basis points). The new rates have come into effect from today i.e. 15 December 2023. MCLR is the minimum interest rate at which a bank gives you a loan. That means taking loan from SBI has now become expensive. The base rate of State Bank was earlier 10.10 percent, which has been increased to 10.25 percent.
At the same time, loan based on MCLR will now be available between 8 to 8.85 percent. Overnight MCLR has become 8 percent and MCLR for 1 and 3 months has become 8.20 percent. MCLR has been increased by 10 basis points to 8.55 percent for 6 months. MCLR for 1 year consumer loan has become 8.65 percent. MCLR for 2 and 3 years has been increased by 10 basis points to 8.75 and 8.85 percent respectively.
BPLR also increased
The bank has also increased the benchmark lending rate. These new rates are also coming into effect from today itself. BPLR has been increased by 25 bps from 14.85 percent to 15 percent per annum. Let us tell you that the increase in MCLR will affect the interest rates of home, auto and personal loans. No bank or financial institution can give loan below MCLR. However, there may be some exceptions to this.
RBI instructions regarding MCLR
MCLR will have no effect on fixed rate loans. Banks will have to publish MCLR for different tenures. The next reset of MCLR for any loan will remain the same as the old one.
