SBI lending rate hiked: Interest rates on THESE State Bank of India loans to get costlier
sbi lending rate hiked: interest rates on these state bank of india loans to get costlier –latest sbi loan interest rate 2024
State Bank of India (SBI) has implemented a marginal cost of funds-based lending rate (MCLR) hike by 10 basis points (bps) on select tenures, effective June 15, 2024. This adjustment affects consumer loans such as auto and home loans, making borrowing costlier for customers.
According to SBI's latest updates, the MCLR on one-year loans has risen to 8.75% from the previous 8.65%. The range for MCLR-based rates now extends between 8.10% and 8.95%. Notably, the one-year MCLR, often linked to auto loans, stands at 8.75%.
RBI Maintains Repo Rate
The Reserve Bank of India (RBI) decided to maintain the repo rate at 6.5% in its recent meeting, marking the eighth consecutive meeting without a change. This decision underscores the central bank's cautious approach amidst inflationary pressures and global economic uncertainties. Loan borrowers will have to wait longer for any decrease in the high interest rates, emphasizing the persistence of current rate levels despite market expectations for a reduction.
According to Economics Times, Market analysts foresee potential rate cuts later in the year, possibly in October or December, amid improving economic indicators and inflation moderation. However, immediate relief from high borrowing costs seems unlikely until further clarity emerges on economic stability and inflation trends.
SBI's external benchmark lending rates (EBLR) for home loans remain unchanged at 9.15%, comprising the repo rate of 6.5% plus a spread of 2.65%. Home loan interest rates at SBI currently vary between 8.50% to 9.65%, contingent upon individual credit profiles.
As borrowers navigate these adjustments, SBI's decision to increase MCLR underscores the challenges in accessing affordable credit amidst stagnant repo rates. With expectations pinned on future RBI policy reviews, stakeholders anticipate pivotal adjustments that could potentially ease the burden on loan seekers in the months ahead.