State Bank of India hikes base rate by 15 bps, loan interest rates by up to 10 bps
SBI has raised its base rate from 10.10 percent to 10.25 percent, impacting various loan products tied to this benchmark. The base rate serves as a reference for lending rates across the banking sector, influencing the cost of borrowing for consumers.
The State Bank of India (SBI) has recently announced changes to its lending rates, affecting both the marginal cost of funds-based lending rate (MCLR) and the base rate. These adjustments, effective from December 15, 2023, signify a shift in the interest rate landscape for SBI customers. In this article, we will delve into the details of these changes, their implications for borrowers, and highlight SBI's special festive season home loan offer.
Increase in Base Rate: SBI has raised its base rate from 10.10 percent to 10.25 percent, impacting various loan products tied to this benchmark. The base rate serves as a reference for lending rates across the banking sector, influencing the cost of borrowing for consumers.
MCLR Adjustments: The MCLR-based rates at SBI will now range between 8 percent and 8.85 percent, with specific adjustments for different tenures. The overnight MCLR rate has been set at 8 percent, while rates for one month and three-month tenures have increased to 8.20 percent from 8.15 percent. Notably, the one-year MCLR, often linked to consumer loans, has been raised by 10 basis points to 8.65 percent. Additionally, the six-month, two-year, and three-year MCLR rates have seen increases of 10 basis points each.
External Benchmark Linked Rate (EBLR) and RLLR: SBI's external benchmark linked rate is now 9.15 percent +CRP+BSP, while the Repo Linked Lending Rate (RLLR) is set at 8.75 percent +CRP, effective since February 15, 2023. These rates play a crucial role in determining interest costs for borrowers, particularly those with loans linked to external benchmarks.
Benchmark Prime Lending Rate (BPLR): The Benchmark Prime Lending Rate (BPLR) has been raised by 25 basis points to 15.00 percent per annum from the previous 14.85 percent. This rate is relevant for certain loan products and impacts borrowers who have loans tied to the BPLR.
SBI Festive Season Home Loan Offer: To provide relief to borrowers during the festive season, SBI is offering a reduction of up to 65 basis points on home loan interest rates. This concession applies to various home loan products, including regular home loans, flexipay, NRI, non-salaried, privilege, and Apon Ghar. The special festive season offer is valid until December 31, 2023.
Current Holiday Promotions: In its current holiday promotions, SBI is offering home loans with interest rates as low as 8.4 percent annually, presenting an attractive opportunity for prospective homebuyers. Additionally, discounts are available for top-up house loans, with interest rates starting at 8.9 percent annually under this special campaign.
The adjustments in SBI's lending rates have widespread implications for borrowers, influencing the cost of various loans linked to these benchmarks. While the increase in rates may pose challenges for some borrowers, the festive season home loan offer and holiday promotions present opportunities for cost savings. Borrowers are encouraged to carefully assess these changes and explore available concessions to make informed financial decisions.