SBI RATE HIKE. The country's largest public sector bank, State Bank of India (SBI), has given another shock to its customers. SBI has increased the Marginal Cost of Lending Rates (MCLR) by 10 basis points for different periods. The new rates have come into effect from today, August 15, 2024. This is the third consecutive month when SBI has increased the MCLR.
New Rates
SBI's new MCLR for three-year tenure has now increased from 9% to 9.10%. Similarly, the overnight MCLR has increased from 8.10% to 8.20%. Here are the details of the new rates:
- Overnight: increased from 8.10% to 8.20%
- One month: increased from 8.35% to 8.45%
- three months: increased from 8.40% to 8.50%
- Six months: increased from 8.75% to 8.85%
- One year: increased from 8.85% to 8.95%
- Two years: increased from 8.95% to 9.05%
- three years: increased from 9.00% to 9.10%
Increase for the third consecutive month
SBI has raised the MCLR by up to 30 basis points (bps) in some tenors till June 2024. MCLR is the minimum interest rate below which a bank cannot lend, except in certain cases permitted by the Reserve Bank of India (RBI).
This increase in MCLR rate means that loans like home loans, car loans, and education loans will become more expensive for customers. In April 2016, RBI introduced MCLR as a benchmark for lending rates, so that interest rates could be more transparent and market driven.
