On one hand, the country is celebrating the 78th Independence Day, while on the other hand, the country’s largest government bank SBI has shocked its crores of customers. Actually, State Bank has increased the loan interest rates (SBI MCLR Hike) by 10 basis points or 0.10 percent, this change will affect loans of different tenures. After this decision, taking a loan from the bank will become expensive.
New rates came into effect from August 15
After the increase in MCLR by the State Bank of India (SBI), now the new loan rates have been implemented on loans of all tenures from today, 15 August or Independence Day (Independence Day 2024). This is the third consecutive increase in loan rates by the country’s largest public sector bank in the last three months. With the implementation of the new rates, the MCLR for 3-year tenure has increased from 9% to 9.10%, while the overnight MCLR has increased from 8.10% to 8.20%.
Now these are the new MCLR rates on different tenures
| Loan tenure | New rates after change |
| Overnight | increased from 8.10% to 8.20% |
| one month | increased from 8.35% to 8.45% |
| three months | increased from 8.40% to 8.50% |
| Six Months | increased from 8.75% to 8.85% |
| one year | increased from 8.85% to 8.95% |
| two years | increased from 8.95% to 9.05% |
| three years | increased from 9.00% to 9.10% |
These banks have also changed the interest rates
Before this increase in the loan rates by SBI, many banks have revised their MCLR and their new rates have come into effect from this month. This list includes other names including Bank of Baroda, Canara Bank and UCO Bank. Bank of Baroda and Canara Bank have made their new rates effective from August 12, while the revised rate of UCO Bank is effective from August 10, 2024.
What is MCLR?
Now let’s talk about what the bank’s Marginal Cost of Funds Based Lending Rate (MCLR) is and what effect it has on the loan taker. So let us tell you that MCLR is the minimum rate below which no bank can give loan to the customers. It is clear from this that if there is a change in it, then the effect is seen on the loan EMI. As much as the MCLR increases, the interest on the loan also increases and when it decreases, it decreases. However, the EMI is not affected as soon as the MCLR increases, rather the change is implemented only on the reset date.
Source (PTI) (NDTV) (HINDUSTANTIMES)