SBI MCLR Rate

News About SBI MCLR Rate

• Starting 1 October margin on repo rate hiked by SBI

  Details of home loans linked to the repo rate of the Reserve bank of India (RBI) has been announced by the country’s largest lender State Bank of India (SBI). The margin or total spread has been hiked which will be charged over and above the repo rate when the interest will be computed on the new loans. The loans will charge a floating rate of interest to its borrowers and will be linked to the external benchmark rate which will be equivalent to the repo rate plus 2.65%. The revised interest rates have been revealed by SBI for its repo-linked home loan schemes as per which the lowest rate is 8.2% from the previous 8.5%. There is, however, no clarity on the other conditions of these home loan schemes. The hike in margin/spread for the new floating rate schemes will take effect from 1 October 2019. SBI had recently withdrawn the earlier repo-linked scheme so that a new revamped scheme could be launched. The public lender will charge a 2.65% or 265 basis points spread over the repo rate of RBI. Women borrowers will get a concession of 5 bps.

  

  26 September 2019

• SBI Links Savings Bank Account Deposit and Short-Term loans to the RBI’s Repo Rate 

  India’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 India’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 RBI’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

• SBI Cuts Home Loan Interest Rate for all Loans up to Rs.30 Lakh 

  After the Reserve Bank of India (RBI) reduced policy repo rate by 25 basis points, India’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 ‘Housing for all’ 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 – 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 – MIG-I is Rs.2.35 lakh, while under the CLSS – MIG-II is Rs.2.30 lakh.

   

  

  5 March 2019

• SBI reduces the rate of interest for home loans

  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%–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%–9.0%. Other categories that apply for the loan will have an interest rate that ranges between 8.80%–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%–9.05%.

  

  12 February 2019