A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • SBI MCLR Rate

    State Bank of India has revised the Marginal Cost of funds based Lending Rate with effect from 10 May 2020. MCLR is defined as the minimum rate of interest benchmarked by the bank below which the bank cannot lend to the customers.

    MCLR rates slashed by SBI across all tenors

    State Bank of India has slashed its Marginal Cost of funds-based Lending Rate (MCLR) by 25 basis points across all tenors. The new rates are effective from 10 June 2020. The new 1-year MCLR rate will be 7.00% when earlier it was 7.25%. This will bring down the Equated Monthly Instalments (EMIs) on home loans that are linked to the MCLR.


    Current SBI MCLR Rate

    Tenor SBI MCLR Rates
    Overnight 6.70%
    1 Month 6.70%
    3 Month 6.75%
    6 Month 6.95%
    1 Year 7.00%
    2 Years 7.20%
    3 Years 7.30%

    How Do You Switch from SBI Base Rate to MCLR?

    Switching to a MCLR to a base rate system primarily involves two steps.

    • Giving a written request to the bank to link your loan with MCLR as opposed to the base rate system.
    • After linking your loan to MCLR, request the bank to decrease the ‘quantum of spread’. This will attract a processing fee, and after the fee has been paid, your rate of interest will be revised as per the MCLR scheme.

    How Does the Revised MCLR Affect Existing Borrowers?

    State Bank of India, one the leading lenders by assets in the country, has raised the marginal cost of funds based lending rates (MCLR) across tenures by 5 basis points. The revised rates shall be effective immediately. With home loan interest rates linked to the MCLR, the interest rates are expected to go up on the loans. New home loan borrowers will have to pay a higher rate of interest on their loans while existing borrowers can continue paying the same rate until the reset clause is specified. In most MCLR-linked home loans, the bank resets the rate of interest only after 6-12 month as per the agreement between the bank and the customer. Once the reset clause has been activated, the rate of interest associated with the new MCLR becomes the new rate. The new rate will be the benchmark on which the existing borrower’s future Equated Monthly Instalments (EMI) will be computed. However, one can always make regular partial prepayments in order to reduce the burden of interest.

    SBI MCLR Base Rate History

    Revised Date Overnight MCLR 1 month MCLR 3 month MCLR 6 month MCLR 1 year MCLR 2 year MCLR 3 year MCLR
    10 June 2020 6.70% 6.70% 6.75% 6.95% 7.00% 7.20% 7.30%
    10 May 2020 6.95% 6.95% 7.00% 7.20% 7.25% 7.45% 7.55%
    10 April 2020 7.10% 7.10% 7.15% 7.35% 7.40% 7.60% 7.70%
    10 March 2020 7.45% 7.45% 7.50% 7.70% 7.75% 7.95% 8.15%
    10 February 2020 7.60% 7.60% 7.65% 7.80% 7.85% 8.05% 8.15%
    10 January 2020 7.65% 7.65% 7.70% 7.85% 7.90% 8.10% 8.20%
    10 December 2019 7.65% 7.65% 7.70% 7.85% 7.90% 8.10% 8.20%
    10 March 2019 8.20% 8.20% 8.25% 8.40% 8.55% 8.65% 8.75%
    10 February 2019 8.20% 8.20% 8.25% 8.40% 8.55% 8.65% 8.75%
    10 January 2019 8.20% 8.20% 8.25% 8.40% 8.55% 8.65% 8.75%
    10 December 2018 8.20% 8.20% 8.25% 8.40% 8.55% 8.65% 8.75%
    01 November 2018 8.15% 8.15% 8.20% 8.35% 8.50% 8.60% 8.70%
    01 October 2018 8.15% 8.15% 8.20% 8.35% 8.50% 8.60% 8.70%
    01 September 2018 8.10% 8.10% 8.15% 8.30% 8.45% 8.55% 8.65%
    01 August 2018 7.90% 7.90% 7.95% 8.10% 8.25% 8.35% 8.45%
    01 July 2018 7.90% 7.90% 7.95% 8.10% 8.25% 8.35% 8.45%
    01 June 2018 7.90% 7.90% 7.95% 8.10% 8.25% 8.35% 8.45%
    01 May 2018 7.80% 7.80% 7.85% 8.00% 8.15% 8.25% 8.35%
    01 April 2018 7.80% 7.80% 7.85% 8.00% 8.15% 8.25% 8.35%
    01 March 2018 7.80% 7.80% 7.85% 8.00% 8.15% 8.25% 8.35%
    01 February 2018 7.70% 7.80% 7.85% 7.90% 7.95% 8.05% 8.10%
    01 January 2018 7.70% 7.80% 7.85% 7.90% 7.95% 8.05% 8.10%
    01 December 2018 7.70% 7.80% 7.85% 7.90% 7.95% 8.05% 8.10%
    01 November 2017 7.70% 7.80% 7.85% 7.90% 7.95% 8.05% 8.10%
    01 October 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 September 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 August 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 July 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 June 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 May 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 April 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 March 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 February 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 January 2017 7.75% 7.85% 7.90% 7.95% 8.00% 8.10% 8.15%
    01 December 2016 8.65% 8.75% 8.80% 8.85% 8.90% 9.00% 9.05%
    01 November 2016 8.65% 8.75% 8.80% 8.85% 8.90% 9.00% 9.05%
    01 October 2016 8.65% 8.75% 8.80% 8.85% 8.90% 9.00% 9.05%
    01 September 2016 8.85% 8.95% 9.00% 9.05% 9.10% 9.20% 9.25%
    01 August 2016 8.85% 8.95% 9.00% 9.05% 9.10% 9.20% 9.25%
    01 July 2016 8.90% 9.00% 9.05% 9.10% 9.15% 9.25% 9.30%
    01 June 2016 8.90% 9.00% 9.05% 9.05% 9.15% 9.25% 9.30%
    01 May 2016 8.90% 9.00% 9.05% 9.05% 9.15% 9.25% 9.30%

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