With India’s largest lender State Bank of India (SBI) hiking its marginal cost of funds-based lending rate (MCLR) effective June 15 (Wednesday), the minimum home loan interest rate has also been revised upwards. The move comes after the Reserve Bank of India (RBI) last week raised the key repo rate by 50 basis points (bps) to control inflation in the country. Here’s the latest home loan rates of SBI:
The lowest interest rate on home loans that SBI is now offering to borrowers is 7.55 per cent per annum. For this, a borrower will also require a CIBIL score of 800 or above. Those having a CIBIL score of 750-799 will be offered 7.65 per cent interest rate. For those with 700-749 score, it will be 7.75 per cent; for 650-699 score, it will be 7.85. And, those having a CIBIL score between 550 and 649, the home loan will be the costiest at 8.05 per cent interest.
The bank’s benchmark one-year MCLR has been revised upwards to 7.40 per cent, against the current 7.20, effective Wednesday (June 15). Most of the consumer loans such as auto, home and personal loans are linked to MCLR, as it also changes as per the change in repo rate.
Apart from loans, the bank has also raised its deposit and lending rates. SBI has said interest rates have been raised by 0.20 per cent on domestic term deposits of below Rs 2 crore for select tenors. The revised interest rates on retail domestic term deposits (below Rs 2 crore) come into effect from June 14, 2022.
For deposits of 211 days to less than 1 year, the lender will offer interest rate at 4.60 per cent, as against 4.40 per cent earlier. Senior citizens will be offered an interest of 5.10 per cent as against 4.90 per cent earlier.
“Premature penalty for bulk term deposits for all tenors will be 1 per cent. It will be applicable for all new deposits including renewals. The revised rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits,” SBI has said.
SBI has also raised the repo linked lending rate (RLLR) with effect from June 15, 2022, according to its website. The revised RLLR will be 7.15 per cent plus credit risk premium (CRP), as against the existing 6.65 per cent plus CRP.
Several banks have been increasing their fixed deposit interest rates following the RBI’s announcement on June 8. Recently, a host of other banks have raised their interest rates on fixed deposits across multiple tenor baskets for retail customers.
The RBI’s Monetary Policy Committee last week unanimously decided to raise the repo rate by 50 basis points to 4.90 per cent with the focus on withdrawal of accommodation. It has prompted the lenders to hike interest rates on loans.