Top News

state Bank of India: The Reserve Bank of India has not made any change in the repo rate. But many banks have started increasing the interest on loans. State Bank of India has once again increased the interest rates on home loans. That means now you will have to pay more EMI on your loan. After the RBI monetary policy meeting, SBI has announced an increase in interest rates.

SBI has increased its marginal cost of lending rates (MCLR) by 10 basis points or 0.1% for all tenures from June 15. This move by SBI will increase the EMI of all loans linked to MCLR. This means that now you will have to pay more EMI on the loan every month than before.

How much did MCLR increase over which period
With the increase by SBI, one year MCLR has increased from 8.65% to 8.75%. Overnight MCLR has increased from 8% to 8.10%. On the other hand, MCLR of both one month and three months has increased from 8.20% to 8.30%. Six month MCLR has now increased from 8.55% to 8.65%. Apart from this, two year MCLR has increased from 8.75% to 8.85%. On the other hand, three year MCLR has now increased from 8.85% to 8.95%.

No impact on loans linked to repo rate
It should be noted here that most retail loans, including home loans and auto loans, are linked to the one-year MCLR rate. The hike in MCLR has no impact on borrowers linked to external benchmarks such as the RBI repo rate or treasury bill yield. From October 2019, banks, including SBI, have been required to link new loans to this external benchmark.

SBI raises $100 million through bonds
SBI also announced on Friday that it has raised $100 million through bonds. The floating rate notes with a three-year maturity and Secured Overnight Financing Rate (SOFR) +95 basis points per annum coupon will be issued on June 20, 2024 through SBI’s London branch.