In a recent development, the State Bank of India (SBI) has decided to raise the Marginal Cost of Funds Based Interest Rate (MCLR) by 0.05 percent.
As a result of this increase, borrowers across all loan tenures will experience an uptick in their monthly installments.
The impact of this adjustment will only be felt by those borrowers who have availed loans at the Fund’s Marginal Cost Based Interest Rate (MCLR),
while individuals with loans tied to other standard interest rates will remain unaffected.
SBI has confirmed that the revised MCLR rate will come into effect from July 15, as stated on their official website.
Consequently, the MCLR for a one-year term has risen to 8.55 percent, up from its previous rate of 8.50 percent.
Since most loans are linked to the one-year MCLR rate, this change will have a broad impact.
Additionally, the MCLR rates for one month and three months have also increased by 0.05 percent, settling at 8 percent and 8.15 percent, respectively.
Meanwhile, the six-month MCLR has been set at 8.45 percent.
With these adjustments, borrowers who have loans tied to SBI’s MCLR will experience a rise in their monthly loan installments.