New Delhi: State Bank of India (SBI), the country's largest public sector bank, has made loans expensive. The bank has increased its Marginal Cost of Funds based Lending Rate (MCLR) by 5 basis points (bps) for three tenures 3, 6 and 12 months. This step has been taken despite the fact that interest rates have started coming down across the world and the RBI is also expected to start cutting the key repo rate in 2025. This increase in loan rates for these periods will be effective from today, November 15. Will be effective. With this amendment, MCLR for 3 months and 6 months has become 8.55 per cent as against 8.50 per cent and 8.90 per cent as against 8.85 per cent respectively. One year MCLR has now become 9 per cent, whereas earlier it was 8.95 per cent. There has been no change in MCLR for other periods.
The MCLR for two and three year tenors is 9.05 per cent and 9.10 per cent respectively. This increase in MCLR will have a direct impact on the cost of borrowing for these tenors. What is MCLR?MCLR is a rate set by the Reserve Bank of India (RBI). It is the benchmark that determines the minimum interest rate at which banks can lend to borrowers. Banks use MCLR to determine interest rates on different types of loans, including home loans, personal loans and business loans.
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