Bad news for borrowers! SBI has increased the lending rates so much, know the new rates

Bad news for borrowers: State Bank of India (SBI) has raised its 1-year marginal cost-based lending rate (MCLR) by up to 10 basis points (BPS). 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 be aware that due to increase in MCLR, their loan and EMI will become costlier.

But keep in mind that the increase in MCLR only affects 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.

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.