SBI: State Bank of India has recently revised its Marginal Cost of Funds Based Lending Rate, effective from July 15, 2024. This decision reached the pockets of the borrowers under different categories of loans, such as car and home loans, thus increasing Equated Monthly Installments.
Current and Revised MCLR Rates
As of July 15, 2024, SBI’s MCLR rates will be as follows:
- Three Month MCLR: Current rate 8.30%, Revised rate 8.40%
- Six Month MCLR: Current rate 8.65%, Revised rate 8.75%
- One Year MCLR: Current rate 8.75%, Revised rate 8.85%.
- Two Years MCLR: Current rate 8.85%, Revised rate 8.95%.
These adjustments have been made considering changes in SBI‘s cost of funds and are important factors in deciding interest rates of loans linked to MCLR.
Impacts on Borrowers
The rise in MCLR rates will directly affect the borrowers:
Car Loans: With an increase in EMIs on car loans, it will certainly turn dear on the question of affordability for all categories of borrowers—both existing and new
Home Loans: Higher EMIs will impact the budget and financial planning of prospective house-owners and existing ones alike
FD Rates of SBI Bank
As far as Fixed Deposits with SBI are concerned, rates prevailing at the moment are highly competitive in all tenures itself:
- 7 days to 45 days: 3.50%
- 46 days to 179 days: 5.50%
- 180 days to 210 days:6%
- 211 days to less than 1 year: 6.25%
- 1 year to less than 2 years: 6.80%
- 2 years to less than 3 years: 7%
- 3 years to less than 5 years: 6.75%%
- 5 years and up to 10 years: 6.50%
The move by SBI to hike the MCLR rates goes on to prove the fact that interest rate movements never remain static in the banking world. Increased EMIs for the borrowers raise the requirement to revise financial plans, thus making a case for restructuring of loans or other alternatives like refinancing. On the other hand, with SBI matching up with competitive rates, the FD investors now get stable returns amidst fluctuating economic conditions. Understanding these rate modifications is of utmost relevance to the current economic environment, wherein both borrowers and investors should make informed financial decisions.