Recently, the Reserve Bank of India (RBI) has given great relief to the common man. RBI has not made any change in the repo rate this time. Now its effect is visible.
The country’s largest bank State Bank of India (SBI) has given relief to crores of its customers. The bank has kept the Marginal Cost Based Lending Rate (MCLR) used in determining the interest rate of the loan as before.
Most consumer loans are based on a one-year marginal cost based lending rate. In such a situation, personal loan, auto and home loan rates can remain unchanged due to no change in MCLR. Now you will not have to pay more EMI than before on taking the loan.
Latest interest rates of State Bank of India
The bank has kept MCLR at 7.95 per cent for loans with a tenure of one day while the interest rate for loans with a tenure of 1 month and 3 months will be 8.10 per cent. If you go to take a loan of 6 months from SBI now, then you will have to pay interest according to the MCLR of 8.40 percent. At the same time, the interest rates for loans of one year, 2 years and 3 years have been retained at 8.50 per cent, 8.60 per cent and 8.70 per cent respectively. According to SBI’s website, these rates are effective from April 15, 2023.
What is MCLR?
Significantly, MCLR is a method developed by the Reserve Bank of India, on the basis of which banks determine the interest rate for loans. MCLR is the minimum interest rate below which the bank cannot give any loan.
The pace of increase in the repo rate stopped after 6 consecutive shocks.
Let us tell you that in the first RBI MPC meeting of the new financial year, it has been announced to keep the repo rate stable. The repo rate has been retained at 6.50 per cent. Earlier, RBI had increased the repo rate by 2.50 percent from May 2022 to February 2023.
