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Bank Loan Rate Hike: If you are a customer of public sector State Bank of India (SBI) then this news is for you. Actually, SBI has announced an increase of 0.05 percent in its Marginal Cost of Funds Based Lending Rate (MCLR). According to the bank’s website, one year MCLR has been increased by 0.05 percent to nine percent. Let us tell you that the rate of personal, auto, home loan is decided by one year MCLR rate.
Increase in MCLR of 3, 6 months
SBI has also increased the MCLR of three and six months. MCLR has been retained for one day, one month, two years and three years. Bank Chairman CS Shetty said that 42 per cent of the bank’s loan segment is linked to MCLR, while the rest is based on external benchmarks. He also clarified that deposit rates in the banking system are at an all-time high.
Let us tell you that the bank has recently increased MCLR twice. At the same time, the Reserve Bank of India (RBI) has decided to keep its policy rate repo unchanged at 6.5 percent for the tenth consecutive time. However, interest rates are expected to be cut in the coming months.
HDFC Bank also gave a shock
Recently, private sector HDFC Bank has increased the MCLR by 0.05 percent on loans with selected maturity periods. The standard MCLR rate has been retained at 9.45 per cent for a period of one year. However, the MCLR for one day has increased from 9.10 per cent to 9.15 per cent, while the rate for one month has increased by 0.05 per cent to 9.20 per cent. There has been no change in the rates of loans with other maturity periods. The new rates are effective from November 7, 2024.