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  • SBI MCLR Rate

    State Bank of India has revised the Marginal Cost of funds based Lending Rate with effect from 15 September 2021. 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 15 September 2021. While the 1-year MCLR rate still stands at 7.00% p.a. (after the 15 September 2021 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.

    Current SBI MCLR Rate

    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%

    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 September 2021 6.65% 6.65% 6.65% 6.95% 7.00% 7.20% 7.30%
    10 August 2021 6.65% 6.65% 6.65% 6.95% 7.00% 7.20% 7.30%
    10 July 2021 6.65% 6.65% 6.65% 6.95% 7.00% 7.20% 7.30%
    10 June 2021 6.65% 6.65% 6.65% 6.95% 7.00% 7.20% 7.30%
    10 May 2021 6.65% 6.65% 6.65% 6.95% 7.00% 7.20% 7.30%
    10 April 2021 6.65% 6.65% 6.65% 6.95% 7.00% 7.20% 7.30%
    10 March 2021 6.65% 6.65% 6.65% 6.95% 7.00% 7.20% 7.30%
    10 February 2021 6.65% 6.65% 6.65% 6.95% 7.00% 7.20% 7.30%
    10 January 2021 6.65% 6.65% 6.65% 6.95% 7.00% 7.20% 7.30%

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