New Delhi: State Bank of India (SBI), a state-owned lender, has raised its 1-year marginal cost-based lending rate (MCLR) by up to 10 basis points (BPS), the bank said on Friday. The new rate is now 8.4 percent. MCLR is the minimum interest rate at which a bank will not lend, barring a few exceptions.
Customers should expect that their loan and EMI will become costlier due to increase in MCLR. But keep in mind that the increase in MCLR affects only the floating interest rate; It has no effect on the fixed interest rate. If the Reserve Bank of India increases the repo rate, banks increase their lending rates or MCLR to pass the cost on to their customers. ,Also read: Tips and tricks: Follow these 5 ways to save income tax,
The bank had already increased the MCLR in December 2022. At that time, it had increased the MCLR from 8.05 per cent to 8.30 per cent for a period of six months and one year. MCLR increased from 8.25 per cent to 8.50 per cent for two years and from 8.35 per cent to 8.60 per cent for three years. ,Also Read: Exclusive LIC Plan For Women: Invest Rs 58 Per Day In Aadhaar Shila Plan, Get Rs 8 Lakh On Maturity- Check Benefits, Premium Chart, Calculator & Other Details,