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EMIs on Home Loan Set to Go Up as SBI Hikes Home Loan Interest

With effect from June 15, SBI has also increased the repo-linked lending rate (RLLR). The new RLLR will be 7.15 percent plus credit risk premium (CRP), up from 6.65 percent-plus CRP now.

Binita Kumari
The benchmark one-year MCLR rate has been raised to 7.40 percent from 7.20 percent previously. The MCL for overnight to three-year tenors has been raised to 7.05-7.70%.
The benchmark one-year MCLR rate has been raised to 7.40 percent from 7.20 percent previously. The MCL for overnight to three-year tenors has been raised to 7.05-7.70%.

Following the Reserve Bank of India's (RBI) repo rate hike last week, the country's largest lender, the State Bank of India, has raised lending rates. The repo rate was raised by 0.50 percent to 4.90 percent by the central bank. With effect from June 15, the public sector bank increased the marginal cost of fund-based lending rates (MCLR) by up to 0.20 percent, raising EMIs on home, auto, and personal loans.

The benchmark one-year MCLR rate has been raised to 7.40 percent from 7.20 percent previously. The MCL for overnight to three-year tenors has been raised to 7.05-7.70%. With effect from June 15, SBI has also increased the repo-linked lending rate (RLLR). The new RLLR will be 7.15 percent plus credit risk premium (CRP), up from 6.65 percent-plus CRP now.

The MCLR is linked to the majority of consumer loans, including auto, housing, and personal loans. The MCLR system went into effect on April 1, 2016, replacing the previous framework to improve interest rate transmission to customers.

All banks must lend exclusively at an interest rate tied to an external benchmark, such as the RBI's repo rate or treasury bill yield, beginning October 1, 2019. As a result, banks' transmission of monetary policy has gained traction.

Following the RBI's repo rate hike on June 8, several banks raised their rates. With effect from June 15, 2022, SBI has also revised the marginal cost of fund-based lending rates (MCLR) by up to 0.20 percent.

The benchmark one-year MCLR rate has been raised to 7.40 percent from 7.20 percent previously. The majority of consumer loans, including auto, home, and personal loans, are tied to the MCLR. The MCL for overnight to three-year tenors has been raised to 7.05-7.70%.

According to SBI's website, the repo-linked lending rate (RLLR) has been raised with effect from June 15, 2022. The new RLLR will be 7.15 percent plus credit risk premium (CRP), up from 6.65 percent-plus CRP now.

The MCLR system took effect on April 1, 2016, replacing the application environment to improve interest rate transmission to clients.

All banks must lend exclusively at an interest rate tied to an external benchmark, such as the RBI's repo rate or treasury bill yield, beginning October 1, 2019. As a result, banks' transmission of monetary policy has gained traction.

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