GulfHindi English Desk: State Bank of India (SBI), the country’s largest bank, has increased the Marginal Cost of Funds Based Lending Rate (MCLR) by 0.05 percent. This could be bad news for those who have taken loans from SBI.
According to information provided by SBI, this increase in MCLR will affect all borrowers with loans of any tenure. This means that after this increase, the monthly installments or EMIs of all types of borrowers will increase.
As per the information available on SBI’s website, the new changes in MCLR will be effective from July 15. With this increase, the MCLR for one year has become 8.55 percent, which was previously 8.50 percent.
With this increase, the EMIs of borrowers who have taken loans on MCLR will increase. However, borrowers who have taken loans at other standard interest rates will not be affected.
MCLR, which stands for Marginal Cost of Funds Based Lending Rate, is the minimum interest rate determined by a bank. It takes into account factors such as the cost of funds, operating costs, and profit margin to determine the interest rate. Banks use MCLR to calculate interest rates for various loans, including home loans.
SBI’s new MCLR rates (after the increase) are as follows:
👉One month: 8.00 percent
👉Three months: 8.15 percent
👉Six months: 8.45 percent
👉One year: 8.55 percent
en.gulfhindi.com News Summary
👉SBI has increased the Marginal Cost of Funds Based Lending Rate (MCLR) by 0.05%.
👉This increase will affect all borrowers with loans of all tenures.
👉The new MCLR rates will be effective from July 15th.
👉With this increase, the MCLR for one year has become 8.55%.
👉Borrowers who have taken loans at MCLR will see an increase in their monthly installments (EMI).
👉Borrowers who have taken loans at other standard interest rates will not be affected.
👉MCLR is the minimum interest rate determined by a bank based on the cost of funds, operating expenses, and profit margins.
👉SBI uses MCLR to calculate the interest rate for various loans, including home loans.
👉The new MCLR rates after the increase are as follows: one month 👉8.00%, three months 👉8.15%, six months 👉8.45%, one year 👉8.55%.
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