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State Bank of India has revised the Marginal Cost of funds based Lending Rate with effect from 10 July 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 5 to 10 basis points (bps) across for short-term loans. The new rates are effective from 10 July 2020. While the 1-year MCLR rate still stands at 7.00% p.a. (after the 10 June 2020 rate cut), the one month, two months, and three months rates have witnessed the rate cuts. This will bring down the Equated Monthly Instalments (EMIs) on home loans that are linked to the MCLR.
Tenor | SBI MCLR Rates |
---|---|
Overnight | 6.65% |
1 Month | 6.65% |
3 Month | 6.65% |
6 Month | 6.95% |
1 Year | 7.00% |
2 Years | 7.20% |
3 Years | 7.30% |
MCLR Rate By Top Banks
Switching to a MCLR to a base rate system primarily involves two steps.
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.
Revised Date | Overnight MCLR | 1 month MCLR | 3 month MCLR | 6 month MCLR | 1 year MCLR | 2 year MCLR | 3 year MCLR |
---|---|---|---|---|---|---|---|
10 July 2020 | 6.65% | 6.65% | 6.65% | 6.95% | 7.00% | 7.20% | 7.30% |
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% |
As a part of the festive season offer, the State Bank of India (SBI) has made an announcement regarding a concession on the interest rate for home loans (up to 25 bps). A press release by SBI had said that all customers seeking home loan will get a concession of 25 bps when they buy a house over Rs.75 lakh. This will also be based on their CIBIL score. Customers have to apply via the bank's YONO platform in order to avail this offer.
27 October 2020
If you are planning to buy your dream home, then there is some good news. State Bank of India, the country’s largest lender is offering home loans at more affordable rates. A home loan can now be availed from SBI at an initial rate of 6.95% p.a. by women while others can avail it from 7% p.a. onwards. In the second week of June, the bank had announced a reduction in its external benchmark linked lending rate and marginal cost of funds-based lending rate (MCLR). The new rates stand at 6.65% and 7% respectively and have come into effect since July 1. It must be noted here that while the rates start at 6.95%, the actual rates vary depending on the loan amount and profile of the borrower.
8 July 2020
State Bank of India (SBI), the country’s largest commercial bank has cut the Marginal Cost of Funds Based Lending Rate (MCLR) by 10-15 basis points (bps). The rates have been cut across all the tenures and have come into effect from March 10. The revision in the rates meant that the lending rates for the overnight and one-month have come down to 7.45% while the rate for the three-month tenure falls to 7.50%. For the three tenures the rates were cut by 0.15% respectively.
The interest rates for the six-month, one-year, two-year, and three-year tenures were reduced by 0.10% and stood at 7.70%. 7.75%, 7.95%, and 8.05% respectively. It must be noted here that banks are required to change the external benchmark-based rate at least once in every three months.
17 March 2020
The State Bank of India (SBI) has just cut the marginal cost-based lending rate (MCLR) by 10-15 basis points across all tenors. This is now the second time that the SBI has cut the MCLR within a month. The MCLR had been cut by 5 bps in February. From 10 March 2020, the one-year MCLR had been cut from 7.85% to 7.75%. The three-month MCLR has been cut by 15 bps from 7.65% to 7.5%.
12 March 2020
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