The country’s largest bank SBI has increased its loan interest rates. The country’s largest government bank has increased the MCLR i.e. Marginal Cost of Funds Based Lending Rate by 5 basis points. The bank has increased the loan rates for 3 months, 6 months and 1 year. Due to this, car, home loan and personal loan will become expensive.
SBI has recently increased MCLR for the second time. However, the bank has not made any change in MCLR for overnight, one month, two years and three years periods. The interest rates during these periods will be the same as before.
new interest rates
SBI has increased the MCLR by 5 basis points in interest rates for 3 periods, in which the interest rate on 3 month loan has been increased from 8.50 to 8.55 percent and the interest rate on 6 month loan has been increased from 8.85 to 8.90 percent. At the same time, the interest rate on one year loan has been increased from 8.95 percent to 9 percent.
New and old interest rates
| Duration | Previous interest rate (%) | Now interest rate (%) |
| overnight | 8.20 | 8.20 |
| ONE MONTH | 8.20 | 8.20 |
| TREE MONTH | 8.50 | 8.55 |
| SIX MONTH | 8.85 | 8.90 |
| ONE YEAR | 8.95 | 9.0 |
| two years | 9.05 | 9.05 |
| THREE YEARS | 9.10 | 9.10 |
HDFC Bank had also increased MCLR
HDFC Bank had also increased the interest rates in the month of September. The bank had increased MCLR. Which is applicable on loans of overnight, one month and 3 months duration.
What is MCLR?
MCLR is the minimum interest rate at which banks give loans. No bank can give home loan, personal loan or car loan to any person at less than this interest rate. In the year 2016, RBI introduced this system in place of the base rate system. However, those who had taken loan before 2016 are still subject to BPLR. If the bank increases the MCLR rate. So the EMI of the loan automatically increases. Apart from this, MCLR is also related to the repo rate of banks. Therefore, if there is any change in the MCLR rate, it can directly impact the home loan interest rate.
