New Delhi. The country’s largest public sector bank SBI has changed the Funds Based Landing Rate (MCLR) on loans, due to which the interest rates on loans have come down.
In fact, State Bank of India has announced the new marginal cost of MCLR. SBI has cut the interest rate of MCLR period by 25 basis points, although other rates remain unchanged. The revised MCLR has become effective from October 15.
What is MCLR
MCLR means Marginal Cost of Funds Based Lending Rate. This is the minimum interest rate at which banks can lend to their customers. MCLR is an internal benchmark that banks use to decide the interest rate on loans.
What are the new MCLR rates
SBI has adjusted the MCLR-based rates in the range of 8.20% to 9.1%. In this, the overnight MCLR rate is 8.20%, for one month this rate has been reduced from 8.45% to 8.20%. At the same time, the six-month MCLR has been fixed at 8.85%, one-year MCLR has been revised to 8.95%, while two-year MCLR has been revised to 9.05%. Apart from this, the MCLR rate for three years is 9.1%.
What are the interest rates in SBI
SBI’s base rate is 10.40%, which is the benchmark prime lending rate (BPLR) revised to 15.15% per annum from September 15. SBI home loan external benchmark lending rate (EBLR) is 9.15%. On home loans, interest rates can vary between 8.50% to 9.65% depending on the borrower’s CIBIL score.
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