As SBI increases loan interest rates; calculate EMI for Rs 30 lakh, 20-year home loan
State Bank of India (SBI), the country's largest bank, has increased its lending rates, resulting in higher EMIs for millions of its customers. Effective from today, the bank's margin cost of funds based lending rates (MCLR) have been raised by up to 10 basis points (0.10%).
State Bank of India (SBI), the country's largest bank, has increased its lending rates, resulting in higher EMIs for millions of its customers. Effective from today, the bank's margin cost of funds based lending rates (MCLR) have been raised by up to 10 basis points (0.10%).
EMI Impact
This hike affects MCLR-linked home loans, auto loans, and other retail loans. The new rates apply to tenures ranging from three months to three years. According to SBI's website, the MCLR increase reflects trends in the bank's cost of borrowing, ensuring transparency in loan interest rates for customers.
RBI's Repo Rate
The Reserve Bank of India (RBI) kept the repo rate stable at 6.5% in its June monetary policy review.
This is the eighth consecutive time the RBI has maintained the repo rate.
Calculation Examples
A customer has taken a Rs 30 lakh home loan from SBI for 20 years, linked to a one-year MCLR.
Previous interest rate: 8.75% with an EMI of Rs 26,511.
New interest rate: 8.85% with an EMI of Rs 26,703.
Increased Expenses
The adjustment signifies a noticeable rise in monthly financial commitments for borrowers.
Highlights the direct impact of SBI's revised lending rates on household budgets.