look news india
Home Loan: The Reserve Bank of India has not made any change in the repo rate for the seventeenth consecutive time, but many banks have started increasing the interest rates on loans. The State Bank of India has once again increased the interest on home loans. This means that now you will have to pay more EMI on your loan. SBI has announced the rate hike a few days after the RBI's monetary policy meeting.
State Bank of India has increased its marginal cost of lending rate (MCLR) by 10 basis points or 0.1% for all tenures from June 15. This move by SBI will increase the EMI of all types of loans subject to MCLR. This means that now you will have to pay more EMI on the loan every month than before.
MCLR Rates
With SBI's hike, the one-year MCLR has increased from 8.65% to 8.75%, overnight MCLR has increased from 8.00% to 8.10% and one-month and three-month MCLR has increased from 8.20% to 8.30%. The six-month MCLR has now increased from 8.55% to 8.65%. Also, the two-year MCLR has increased from 8.75% to 8.85% and the three-year MCLR has now increased from 8.85% to 8.95%.
There is no impact on loans linked to repo rate
Most retail loans, including home and auto loans, are linked to the one-year MCLR rate. The increase in MCLR does not affect loans linked to external benchmarks such as the RBI repo rate or treasury bill yield. Therefore, its customers will not be burdened with EMI. From October 2019, it has become mandatory for all banks including SBI to link new loans to this external benchmark.
SBI raises $100 million through bonds
SBI also announced on Friday that it has raised $100 million (about Rs 830 crore) through bonds to support business growth. The floating rate notes with a maturity period of three years and a secured overnight financing rate (SOFR) of +95 basis points per annum will be issued by SBI's London branch on June 20, 2024.