SBI short-term loan interest rates reduced as MCLR changed by 25 bps

The MCLR-based rates have been adjusted to fall within the range of 8.20% to 9.1%. The overnight MCLR is at 8.20%, while the rate for the one-month is reduced from 8.45% to 8.20%, a dip by 25 bps

The State Bank of India (SBI) has announced its latest marginal cost of funds-based lending rate (MCLR) for loans, applicable from October 15 to November 15, 2024. The bank has reduced the interest rate for one MCLR tenure by 25 basis points (bps), while keeping the other rates unchanged.

 

The adjusted MCLR rates now range between 8.20 per cent and 9.1 per cent. The overnight MCLR is fixed at 8.20 per cent, while the one-month MCLR has been lowered by 25 basis points, from 8.45 per cent to 8.20 per cent.

 

The three-month MCLR remains at 8.50 per cent, the six-month MCLR remains at 8.85 per cent, while the one-year MCLR is now 8.95 per cent. The two- year and three-year MCLRs are fixed at 9.05 per cent and 9.1 per cent, respectively.

 

 

What is MCLR?

 

MCLR is the minimum lending rate below which a bank is not permitted to lend, except in certain cases allowed by the Reserve Bank of India (RBI). A higher MCLR leads to higher interest rates and higher EMIs for borrowers and vice-versa. 

 

What about other SBI lending rates?

 

As of September 15, 2024, the SBI’s base rate is 10.40 per cent, while the Benchmark Prime Lending Rate (BPLR) has been updated to 15.15 per cent per annum, both effective from the same date.

 

For home loans, SBI’s External Benchmark Lending Rate (EBLR) is set at 9.15 per cent, which is linked to the Reserve Bank of India's repo rate of 6.50 per cent, plus a spread of 2.65 per cent. The applicable interest rates on home loans range from 8.50 per cent to 9.65 per cent, depending on the borrower's CIBIL score.

 

SBI’s decision to lower the MCLR follows HDFC Bank, which reduced its 3-month MCLR in September.