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State Bank of India has reviewed the Marginal Cost of funds based Lending Rate with effect from 10 March, 2019. MCLR is defined as the minimum rate of interest benchmarked by the bank below which the bank cannot lend to the customers.
Tenor | SBI MCLR Rates |
---|---|
Overnight | 8.20% |
1 Month | 8.20% |
3 Month | 8.25% |
6 Month | 8.40% |
1 Year | 8.55% |
2 Years | 8.65% |
3 Years | 8.75% |
As per the latest RBI guidelines, State Bank of India has reviewed the interest rates applicable to SBI Home Loans for both women as well as other applicants/co-applicants. The bank has hiked the Marginal Cost of funds based Lending Rate by 5 basis points (bps) or 0.05% across all tenures. The MCLR for overnight and one-month tenures presently stands at 8.15%. The bank has set the MCLR for three-months and six-months at 8.20% and 8.35% respectively. The one-year MCLR on which most retail loans are benchmarked now stands at 8.50%.
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 borrowerâ€™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 March 2019 | 8.20% p.a. | 8.20% p.a. | 8.25% p.a. | 8.40% p.a. | 8.55% p.a. | 8.65% p.a. | 8.75% p.a. |
10 February 2019 | 8.20% p.a. | 8.20% p.a. | 8.25% p.a. | 8.40% p.a. | 8.55% p.a. | 8.65% p.a. | 8.75% p.a. |
10 January 2019 | 8.20% p.a. | 8.20% p.a. | 8.25% p.a. | 8.40% p.a. | 8.55% p.a. | 8.65% p.a. | 8.75% p.a. |
10 December 2018 | 8.20% p.a. | 8.20% p.a. | 8.25% p.a. | 8.40% p.a. | 8.55% p.a. | 8.65% p.a. | 8.75% p.a. |
01 November 2018 | 8.15% p.a. | 8.15% p.a. | 8.20% p.a. | 8.35% p.a. | 8.50% p.a. | 8.60% p.a. | 8.70% p.a. |
01 October 2018 | 8.15% p.a. | 8.15% p.a. | 8.20% p.a. | 8.35% p.a. | 8.50% p.a. | 8.60% p.a. | 8.70% p.a. |
01 September 2018 | 8.10% p.a. | 8.10% p.a. | 8.15% p.a. | 8.30% p.a. | 8.45% p.a. | 8.55% p.a. | 8.65% p.a. |
01 August 2018 | 7.90% p.a. | 7.90% p.a. | 7.95% p.a. | 8.10% p.a. | 8.25% | 8.35% | 8.45% |
01 July 2018 | 7.90% p.a. | 7.90% p.a. | 7.95% p.a. | 8.10% p.a. | 8.25% | 8.35% | 8.45% |
01 June 2018 | 7.90% p.a. | 7.90% p.a. | 7.95% p.a. | 8.10% p.a. | 8.25% | 8.35% | 8.45% |
01 May 2018 | 7.80% p.a. | 7.80% p.a. | 7.85% p.a. | 8.00% p.a. | 8.15% | 8.25% | 8.35% |
01 April 2018 | 7.80% p.a. | 7.80% p.a. | 7.85% p.a. | 8.00% p.a. | 8.15% | 8.25% | 8.35% |
01 March 2018 | 7.80% p.a. | 7.80% p.a. | 7.85% p.a. | 8.00% p.a. | 8.15% | 8.25% | 8.35% |
01 February 2018 | 7.70% p.a. | 7.80% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% | 8.05% | 8.10% |
01 January 2018 | 7.70% p.a. | 7.80% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% | 8.05% | 8.10% |
01 December 2018 | 7.70% p.a. | 7.80% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% | 8.05% | 8.10% |
01 November 2017 | 7.70% p.a. | 7.80% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% | 8.05% | 8.10% |
01 October 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% | 8.10% | 8.15% |
01 September 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% p.a. | 8.10% p.a. | 8.15% p.a. |
01 August 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% p.a. | 8.10% p.a. | 8.15% p.a. |
01 July 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% p.a. | 8.10% p.a. | 8.15% p.a. |
01 June 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% p.a. | 8.10% p.a. | 8.15% p.a. |
01 May 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% p.a. | 8.10% p.a. | 8.15% p.a. |
01 April 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% p.a. | 8.10% p.a. | 8.15% p.a. |
01 March 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% p.a. | 8.10% p.a. | 8.15% p.a. |
01 February 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% p.a. | 8.10% p.a. | 8.15% p.a. |
01 January 2017 | 7.75% p.a. | 7.85% p.a. | 7.90% p.a. | 7.95% p.a. | 8.00% p.a. | 8.10% p.a. | 8.15% p.a. |
01 December 2016 | 8.65% p.a. | 8.75% p.a. | 8.80% p.a. | 8.85% p.a. | 8.90% p.a. | 9.00% p.a. | 9.05% p.a. |
01 November 2016 | 8.65% p.a. | 8.75% p.a. | 8.80% p.a. | 8.85% p.a. | 8.90% p.a. | 9.00% p.a. | 9.05% p.a. |
01 October 2016 | 8.65% p.a. | 8.75% p.a. | 8.80% p.a. | 8.85% p.a. | 8.90% p.a. | 9.00% p.a. | 9.05% p.a. |
01 September 2016 | 8.85% p.a. | 8.95% p.a. | 9.00% p.a. | 9.05% p.a. | 9.10% p.a. | 9.20% p.a. | 9.25% p.a. |
01 August 2016 | 8.85% p.a. | 8.95% p.a. | 9.00% p.a. | 9.05% p.a. | 9.10% p.a. | 9.20% p.a. | 9.25% p.a. |
01 July 2016 | 8.90% p.a. | 9.00% p.a. | 9.05% p.a. | 9.10% p.a. | 9.15% p.a. | 9.25% p.a. | 9.30% p.a. |
01 June 2016 | 8.90% p.a. | 9.00% p.a. | 9.05% p.a. | 9.05% p.a. | 9.15% p.a. | 9.25% p.a. | 9.30% p.a. |
01 May 2016 | 8.90% p.a. | 9.00% p.a. | 9.05% p.a. | 9.05% p.a. | 9.15% p.a. | 9.25% p.a. | 9.30% p.a. |
Indiaâ€™s largest commercial bank, the State Bank of India announced the linking of savings account deposits and short-term loans to the Reserve Bank of Indiaâ€™s (RBI) repo rate. In December, the RBI had asked banks to link all new floating rate retail loans such as home loans with an external benchmark from 1 April 2019. However, the apex bank is yet to issue the guidelines in this regard. Beginning 1 May 2019, SBI will link savings bank deposits above Rs.1 lakh and short-term loans such as overdraft with RBIâ€™s repo rate. Repo rate is the rate at which the RBI lends money to banks. With the linking of rates, the change will be automatically transmitted.
15 March 2019
After the Reserve Bank of India (RBI) reduced policy repo rate by 25 basis points, Indiaâ€™s largest lender State Bank of India (SBI) also cut home loan interest rate for all loans up to Rs.30 lakh. This translates to lower EMI on home loans. SBI also offers several facilities to customers availing a home loan under the Pradhan Mantri Awas Yojana â€˜Housing for allâ€™ scheme. There are four schemes under the credit linked subsidy. Under the CLSS-EWS / LIG, you get interest subsidy at 6.50% for 15 years or actual tenor of the loan, whichever is lower. Under the Revised CLSS â€“ EWS / LIG, the maximum term of loan increased t0 20 years from 15 years. As for the scheme under CLSS (MIG-I), credit linked subsidy at 4% will be offered for loan amount up to Rs.9 lakh in case of MIG-I and 3% for Rs.12 lakh in case of MIG-II. The maximum subsidy eligible under CLSS â€“ MIG-I is Rs.2.35 lakh, while under the CLSS â€“ MIG-II is Rs.2.30 lakh.
5 March 2019
With the reduction in the policy repo rate by RBI by 25 basis points, SBI has reduced the rate of interest it will charge on home loans. This reduced rate of interest can be availed by women wishing to take out a home loan. Assuming the home loan amount availed by a woman does not exceed Rs.30 lakh, the interest rate for the same will range between 8.75%â€“8.85%. If the woman applying for the loan is not a salaried person, then the interest rate increases marginally to range between 8.90%â€“9.0%. Other categories that apply for the loan will have an interest rate that ranges between 8.80%â€“8.90%. There will be an increase in the rate of interest for non-salaried people in other categories with the rate ranging between 8.95%â€“9.05%.
12 February 2019
With the Reserve Bank of India (RBI) expected to hike the benchmark key repo rate in its fourth bi-monthly monetary policy review later during the week, the State Bank of India has reportedly hiked the marginal cost of funds based lending rate (MCLR) by 5 basis points (bps) or 0.05% across tenures. The new rates on the home loans will be effective from 01 October 2018. While the existing customers will have to pay the same rate on their housing loans until the reset clause is specified by the bank, new home loan borrowers will now have to pay a higher interest rate on their home loans. The MCLR on one-year loan tenures now stands at 8.50%. The one-year MCLR is the benchmark rate on which all the SBI housing loans are pegged. The RBI is expected to make an announcement on another hike on 05 October 2018 following its monetary policy review. The central bank has increased the key repo rate by over 50 basis points in the previous two policy review meetings. With the weakening rupee and rising crude prices weighing on the nationâ€™s inflation crisis, the RBI is expected to hike the key repo rate by 25 basis points once again.
4 October 2018
The State Bank of India has raised its benchmark lending rates or Marginal Cost of funds based Lending Rates (MCLR) for various tenors by 20 basis points (bps) or 0.2%. The new rates will be applicable with effect from 01 September 2018. MCLR rates from both overnight and one-month tenures now stand at 8.1%. Following the same line, MCLR rates for one-year and three year tenors have also been raised by 0.2% to stand at 8.45% and 8.65% respectively. The changes in MCLR rates was made a month after the Reserve Bank of India revised its key repo rate in its bi-monthly monetary policy review. The repo rate is defined as the rate at which the RBI lends money to the banks.
3 September 2018
The State Bank of India has decided to increase the MCLR rates for all tenures by 10 basis points which equates to a 0.10% increase effective from June 1, 2018. Increase in Marginal Cost of Lending Rate or MCLR would mean that the person applying for the home loan will have to pay a higher interest rate until SBI decides to decrease the margin on loans to negate it. The RBI is set to lay down its bi-monthly monetary policy on June 6. The MCLR rates have been increased for the second time in under a year. The last increase was made in March.
For the people who have already taken a home loan, the hike in the MCLR rates will change the EMI to be paid. It will depend on when the reset date is. A reset date is a point in time from when the interest rate is adjusted for the borrower which is usually 6 months or a year. The new EMI amount to be paid will be determined based on the margin that will come into effect from the reset date and the new MCLR rates set by the bank.
4 June 2018
Soon after hiking its marginal cost of funds-based lending rates (MCLR) by up to 25 basis points (bps), the State Bank of India â€“ Indiaâ€™s largest bank â€“ has increased its base rate (BR) and benchmark prime lending rate (BPLR) by 5 bps with effect from April 1, 2018.
On the other hand, Allahabad Bank has announced reduction in its lending rates with effect from April 2, 2018. While it has lowered its base rate to 9.15%, its BPLR has been cut to 13.40% from 13.85 per annum. This seems to be both bad and good news for customers. While SBI loans may become costlier going ahead, the EMIs may come down in the case of Allahabad Bank for its loans linked to the base rate. Some industry experts, however, said that the current changes in the base rates do not seem to be aimed at making the loans costlier or cheaper. Instead banks seem to be aliening their base rates to their MCLR as both are slated to be linked now, as per the RBI policy.
16 April 2018
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