Soon after raising its term deposit rates for select tenors, the State Bank of India — India’s largest bank — on Friday increased its marginal cost of funds based lending rate (MCLR) across all tenors effective from 1st June, 2018. The rate has been increased marginally by 10 bps. The bank had last time revised its MCLR by up to 25 bps with effect from March 1, 2018.
This time SBI has increased its over night and one month MCLR from 7.8 per cent to 7.9 per cent, while three month MCLR has been raised to 7.95 per cent from 7.85 per cent earlier. Similarly, six month MCLR has been increased to 8.10 per cent from 8.00 per cent and one year MCLR to 8.25 per cent from 8.15 per cent. Two year and three year MCLR now stands at 8.35 per cent and 8.45 per cent as against 8.25 per cent and 8.35 per cent, respectively, earlier. This means that all types of loans – ranging from personal and car loans to housing loans – will now become a bit costlier and your EMIs will also go up.
Tenor-wise MCLR effective from June 1, 2018:
Tenor | Existing MCLR (In %) | Revised MCLR (In %) |
|---|---|---|
| Over night | 7.80 | 7.90 |
| One Month | 7.80 | 7.90 |
| Three Month | 7.85 | 7.95 |
| Six Month | 8.00 | 8.10 |
| One Year | 8.15 | 8.25 |
| Two Years | 8.25 | 8.35 |
| Three Years | 8.35 | 8.45 |
It may be noted that a 10 bps increase in the lending rate will increase the EMI for a Rs 50-lakh housing loan taken for a period of 20 years by Rs 317 per month, assuming that the current rate of interest is 8.5 per cent, which goes up to 8.6 per cent after the increase in the lending rates.
