SBI increases the rate of MCLR; Home, auto, personal EMI loans on the rise

The country’s largest lender, State Bank of India, has raised its marginal cost of funds-based lending rate (MCLR) by 15 basis points (bps) across all tenors. The rates are effective from Nov. 15, according to the bank’s website. Generally, the MCLR or marginal cost of funds based lending rate is the minimum rate at which a bank can offer loans to its customers. The rate review would make most consumer loans more expensive for customers.

According to the website, overnight MCLR rates remain unchanged at 7.60%. The benchmark one-year MCLR was raised by 10 basis points to 8.05%, from 7.95% previously.

In addition, the two- and three-year MCLRs (8.15% and 8.25%) were raised by 10 basis points each to 8.25% and 8.35%, respectively, according to a notification issued by the bank. .

The MCLR for the one-year term is used to set the base rate for most consumer loans, such as home, auto, and personal.

Bank of Baroda cuts home loan rate

Public sector lender Bank of Baroda cut interest rates on home loans by 25 basis points (bps) to 8.25% effective Nov. 14, 2022. The bank said the cutoff offer is available for a limited time. This special rate is available until December 31, 2022. In addition, customers do not have to prepay or partially pay the customer fee.

The bank is offering the new rates to borrowers applying for new home loans as well as balance transfers, and would consider customers’ credit profiles before offering the loan. In addition to the 25 basis point discount on the interest rate, the Bank will also waive the processing fee.

Read also : Canara Bank is revising its MCLR, RLLR and FD rates after the RBI repo rate hike in September. Check the new rates here

Read also : SBI Raises Lending Rates by 25bps Starting Today, EMIs Will Get More Expensive

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