SBI increases MCLR rate; home, auto, personal loan EMIs to go up

Country's largest lender State Bank of India has increased its marginal cost of funds-based lending rate (MCLR) by 15 basis points (bps) across tenors. The rates are effective from 15 November, as per the bank's website. Generally, MCLR or marginal cost of funds-based lending rate is the minimum rate at which a bank can offer loans to its customers. The rate revision would make most consumer loans costlier for the customers.  

As per the website, the overnight MCLR rates remain unchanged at 7.60 per cent. The benchmark one-year MCLR has been raised by 10 bps to 8.05 per cent, as against 7.95 per cent earlier. 

Besides, the two-year and three-year MCLRs (8.15 per cent and 8.25 per cent) have been raised by 10 basis points each to 8.25 per cent and 8.35 per cent, respectively, a notification issued by the bank stated.  

MCLR for the one-year tenor is used to set the base rate of most consumer loans, such as housing, auto and personal. 

Bank of Baroda reduces home loan rate 

Public sector lender Bank of Baroda has cut down its home loan interest rates by 25 basis points (bps) to 8.25 per cent from November 14, 2022. The bank said the discounted offer is available for a limited period. This special rate is available till December 31, 2022. Besides, customers don’t have to prepay or part-pay any charges for customers. 

The bank is offering the new rates to borrowers who are applying for fresh home loans as well as on balance transfers, and would consider customers’ credit profile before offering the loan. In addition to the 25-bps discount on the rate of interest, the Bank will also waive off processing charges. 

Also read: Canara Bank revises its MCLR, RLLR, FD rates following RBI repo rate hike in September. Check new rates here

Also read: SBI hikes lending rates by 25 basis points from today, EMIs to go dearer