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State Bank of India (SBI) has announced its Marginal Cost of Funds Based Lending Rates (MCLR) for the period from December 15, 2024 to January 15, 2025. The new rates have come into effect from December 15, 2024. SBI has kept the MCLR rates stable for all tenors, which affects the interest rates on home loans, personal loans and other loans.

What is the new update?

SBI has maintained its overnight and one month MCLR at 8.20%. MCLR for three months is 8.55% and MCLR for six months is 8.90%. The one-year MCLR, which is generally applicable for auto loans, is at 9%. MCLR of two and three years has been kept constant at 9.05% and 9.10% respectively.

MCLR is the minimum rate at which banks provide loans. This rate is the basis for calculating loan interest. Apart from this, SBI has also made changes in its base rate and benchmark prime lending rate (BPLR). SBI base rate is 10.40% and BPLR is 15.15% per annum effective from December 15, 2024.

How much will be the impact on home and personal loans?

SBI home loan interest rates depend on the CIBIL score of the borrower. Currently these rates are between 8.50% to 9.65%. SBI's External Benchmark Lending Rate (EBLR) is 9.15%, which is decided on the basis of RBI's repo rate (6.50%) and a spread of 2.65%. SBI's two-year MCLR for personal loan is 9.05%. The minimum CIBIL score for personal loan has been set at 670, especially for corporate salary package account holders.

You will get this discount

SBI has stated that if a loan account is closed with a new loan opened under the same scheme, no prepayment or foreclosure charges will be applicable. For defense personnel, this fee will be completely waived in any loan period. This step by SBI to keep the interest rates stable will provide relief to the borrowers. This move will be especially beneficial for customers who are planning to take home loans and auto loans. The stable interest rates of the Bank will help in maintaining financial stability in the current economic conditions. This decision will help SBI customers in better financial planning and managing their EMIs.