
India's largest lender State Bank of India (SBI) has slashed its marginal cost of funds-based lending rate (MCLR) by 25 basis points for one tenure segment ahead of the festive season. The applicable tenure is the one month segment.
According to the most recent information on the State Bank of India's website, the one-month Marginal Cost of Funds Based Lending Rate (MCLR) has been reduced from 8.45% to 8.20%. The updated rates, effective from October 15, will lead to decreased Equated Monthly Installments (EMIs) for borrowers whose loans are linked to this MCLR tenure. The MCLR serves as the benchmark rate, indicating the lowest interest rate at which banks can lend, and reflects the borrowing costs for banks.
Other lending rates
SBI base rate is at 10.40% effective from September 15, 2024. The MCLR-based rates have recently been adjusted and now range from 8.20% to 9.1%. The overnight MCLR currently stands at 8.20%, while the one-month rate has been reduced from 8.45% to 8.20%, marking a decrease of 25 basis points. At the same time, the six-month MCLR has been established at 8.85%, with the one-year MCLR now set at 8.95%. Furthermore, the two-year MCLR stands at 9.05% and the three-year MCLR at 9.1%.
Here are the revised MCLR rates of SBI:
Tenure Revised MCLR (In %)
Overnight 8.2%
One Month 8.20%
Three Month 8.50%
Six Month 8.85%
One Year 8.95%
Two Years 9.05%
Three Years 9.10%
(Source: SBI website)
SBI home loan rates
The SBI home loan External Benchmark Lending Rate (EBLR) is currently set at 9.15%, which includes the RBI repo rate of 6.50% plus a spread of 2.65%. Interest rates on home loans may range from 8.50% to 9.65% based on the borrower's CIBIL score.
As per SBI home loan website
“In the event of change in benchmark rate (REPO), the interest rate in Home / Home Related Loan account will also undergo change. Upward revision in the Repo Rate will result in consequent increase of interest rate in the Home / Home related loan. The customer will have following options to negate the effect of rise in Rate of Interest:
a. To Pay lump sum amount to continue with existing EMI and Tenor.
b. To Increase the Loan Tenor (within permissible tenor & Age limit).
c. To Increase the EMI to pay the Loan within the existing tenor. d. Combination of any of the above.”