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SBI Home Loan Alert! Check SBI Latest MCLR Rates Effective From Today 15 September 2023

SBI Home loan borrowers have an update, as the bank has announced its latest MCLR rates effective from today. 

SBI Home Loan Alert! Check SBI Latest MCLR Rates Effective From Today 15 September 2023

New Delhi: India's largest public sector lender State Bank of India (SBI) has announced its latest marginal cost of funds-based lending rate (MCLR). The SBI MCLR rates are effective from September 15, 2023, according to the SBI website. The MCLR is the lowest interest rate at which a bank can make a loan to a customer.

Here is the SBI Latest MCLR Rates Effective From Today 15 September 2023

Tenor Existing MCLR (In %) Revised MCLR (In %)*
Over night 8.00 8.00
One Month 8.15 8.15
Three Month 8.15 8.15
Six Month 8.45 8.45
One Year 8.55 8.55
Two Years 8.65 8.65
Three Years 8.75 8.75

The SBI MCLR rate announcement comes a month after the Reserve Bank of India (RBI) kept the repo rates unchanged at 6.5 percent. The Monetary Policy Committee (MPC) of the central bank in August 2023 unanimously decided to take a consecutive pause in its second bi-monthly monetary policy meeting of FY24 after a rate hike seen in previous six consecutive policies.

RBI Repo Rate Unchanged In August 2023

The Monetary Policy Committee meeting of the RBI took place on June 8-10. This is for the third consecutive time that the RBI has paused the interest rates. In its last bi-monthly policy, RBI had maintained a status quo in its repo rate at 6.5 percent.

From October 1, 2019, all banks migrated to an interest rate linked to an external benchmark such as RBI's repo rate or Treasury Bill yield for a better transmission of rate revisions.

Reserve Bank had directed all banks to mandatorily link their interest rate to an external benchmark for all new floating rate personal or retail loans and floating rate loans to Micro and Small Enterprises (MSE) from October 1, 2019. The direction was extended later for medium enterprises as well from April 1, 2020.

The old rates are based on the MCLRs which are determined by factors such as deposit rates, repo rates, operating costs and the cost of maintaining the cash reserve ratio (CRR).