Interest rates on SBI loans: SBI increases these interest rates on loans by 20 bps: check the new rates

The State Bank of India (SBI) raised its marginal cost of lending (MCLR) rate on loans by 20 basis points. The higher MCLR is effective from August 15, 2022. (One basis point equals one hundredth of a percentage point.) External benchmark-linked (EBLR) and repo-linked (RLLR) loans were also increased, according to the website.

According to the notice posted on the State Bank’s website, the one-year MCLR rate was reduced from 7.50% to 7.70%. Rates for the night, one month and three months have been increased from 7.15% to 7.35%

The six-month MCLR was increased from 7.45% to 7.65%, the rates for the two-year and three-year MCLR were raised to 7.90% and 8%, respectively.

EBLR

The SBI raised the benchmark-based external lending rate with effect from August 15, 2022. Rates were raised to 8.05% + CRP + BSP from 7.55% + CRP + BSP.

The EBLR is a combination of the repo rate, a spread and a credit risk premium based on your credit score.

Banks’ repo-linked lending rate (RLLR) is raised to 7.65% + CRP from 7.15% + CRP.

RBI raises repo rates

In its policy review, the Reserve Bank of India raised the key rate, the repo rate, by half a percentage. This is the third consecutive hike by the RBI since raising interest rates earlier this year.

Many banks including ICICI Bank, Bank of Baroda, PNB, HDFC Bank have already raised their marginal cost of lending rate soon after the RBI repo rate hike.