State Bank of India (SBI), the largest public sector bank in the country, has brought good news to millions of its customers just before Diwali.
The bank has lowered its Marginal Cost of Funds Based Lending Rate (MCLR) on loans. Specifically, SBI has reduced the one-month MCLR by 0.25%.
MCLR is the minimum rate below which banks cannot offer loans. These new rates are effective from today, October 15, 2024.
Updated MCLR Rates and Impact
The new MCLR rates at SBI now range from 8.20% to 9.10%. The overnight MCLR rate is now set at 8.20%.
The one-month MCLR has been reduced from 8.45% to 8.20%, a 0.25% drop.
This reduction will directly affect the Equated Monthly Installments (EMIs) on home and car loans, as MCLR influences loan costs.
When MCLR rates increase, new loans become more expensive, and existing EMIs also rise.
MCLR Rates Table
| Period | Current MCLR (%) | Revised MCLR (%) |
|---|---|---|
| Overnight | 8.20 | 8.20 |
| One Month | 8.45 | 8.20 |
| Three Months | 8.50 | 8.50 |
| Six Months | 8.85 | 8.85 |
| One Year | 8.95 | 8.95 |
| Two Years | 9.05 | 9.05 |
| Three Years | 9.10 | 9.10 |
(Source: SBI Bank website)
SBI Fixed Deposit (FD) Rates
SBI has also revised its Fixed Deposit (FD) rates. Here are the updated rates for the general public and senior citizens:
7 to 45 days: General public – 3.50%, Senior citizens – 4.00%
46 to 179 days: General public – 5.50%, Senior citizens – 6.00%
180 to 210 days: General public – 6.00%, Senior citizens – 6.50%
211 days to less than 1 year: General public – 6.25%, Senior citizens – 6.75%
1 year to less than 2 years: General public – 6.80%, Senior citizens – 7.30%
2 years to less than 3 years: General public – 7.00%, Senior citizens – 7.50%
3 years to less than 5 years: General public – 6.75%, Senior citizens – 7.25%
5 to 10 years: General public – 6.50%, Senior citizens – 7.50%
