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SBI Loan Interest: State Bank of India has made changes in the Marginal Cost of Funds Based Lending Rate (MCLR) for the short term period.

SBI cuts loan interest rate: Well-known bank SBI has made changes in its Marginal Cost of Funds Based Lending Rate (MCLR) for one month only. These changes will be applicable from 15 October to 15 November 2024. SBI has reduced the interest rate by 25 basic points (bps) in this   MCLR tenure. Let us tell you that no change has been made in other rates and this new MCLR rate of SBI will be effective from today i.e. October 15, 2024. Simply put, the interest rate has been reduced by 0.25% for this month and the new interest rate has been fixed between 8.20% to 9.1%.

What is MCLR?

Before understanding this calculation, you must understand that the Marginal Cost of Funds-based Lending Rate (MCLR) is the minimum interest rate given on a bank loan. For SBI, the MCLR interest rate has been reduced by 0.25%.

Changes in MCLR interest rates

The latest SBI MCLR loan will be between 8.20% to 9.1%. The overnight MCLR will remain at 8.20%. However, the one-month rate has been reduced from 8.45% to 8.20%, showing a decline of 25 bps. There is no change in other interest rates. That is, the six-month MCLR rate has been fixed at 8.85%. The one-year MCLR has been revised to 8.95%, while the two-year MCLR has been fixed at 9.05% and the three-year MCLR at 9.1%.

Impact on base rate and BPLR

Let us tell you that the SBI base rate is fixed at 10.40% from September 15, 2024. At the same time, the Benchmark Prime Lending Rate (BPLR) has been revised to 15.15% per annum from September 15, 2024. Apart from this, SBI Home Loan External Benchmark Landing Rate (EBLR) has been fixed at 9.15%. RBI repo rate is 6.50 + spread (2.65%). Interest rates on home loans can be between 8.50% to 9.65% depending on the CIBIL score. It is stated on the SBI Home Loan website that in case of change in benchmark rate (REPO), the interest rate in the home loan account also changes.