Sbi increases Mclr by 10 points per second across all mandates; Sbi home loan, Emis personal loan expected to increase

The State Bank of India (SBI) on Monday raised its marginal cost of funds-based lending rates (MCLR) by 10 basis points (bps) across all mandates. The decision of the country’s largest lender will come into effect from Friday.

The one-year MCLR, which is considered the benchmark, has now risen to 7.10% from the previous 7%. The MCLR on loans from other tenures is now also increased by 10 basis points (Please refer to the table below).

The overnight MCLR will now be at 6.75% from the previous 6.65%. A three-year loan would have an MCLR of 7.40% per annum and a two-year loan would have 7.30%. Loans for shorter terms such as six months, three months and one month would be 7.05%, 6.75% and 6.75%, respectively.

The SBI had earlier in mid-February raised interest rates on fixed deposits (FD) for tenors longer than two years by 10 to 15 basis points. As a result, the FD term of 2 years to less than 3 years will earn an interest of 5.20%. News rates were applicable to FDs worth less than Rs 2 crore.

Last week, India’s largest private sector lender, HDFC Bank, also raised interest rates on FDs whose corpus is below Rs 2 crore. The interest rate for the various mandates was raised by 5 to 10 basis points.

HDFC Bank’s interest rate hike came a day after the Punjab National Bank (PNB) cut interest rates on savings accounts to 2.7% per annum for balances below Rs 10 lakh. India’s second largest public sector bank has also reduced the interest rate on deposits in savings accounts by more than Rs 10 lakh to 2.75%.
For fixed deposits, PNB offers interest rates ranging from 2.9 to 5.25% for deposits maturing in seven days to 10 years. Fixed deposits maturing within 7 to 45 days attract an interest rate of 2.9%, while FDs made for less than one year have a yield of 4.4%.

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