State Bank of India (SBI) has announced a marginal cost of funds-based lending rate (MCLR) increase of 5 basis points (BPS) for three different tenors – 3, 6, and 12 months, effective from November 15. Following the adjustment, the MCLR for 3 and 6 months now stands at 8.55% and 8.90%, up from 8.50% and 8.85%, respectively. The one-year MCLR, specifically linked to auto loans, has been raised from 8.95% to 9.00%. Borrowers with MCLR-linked loans tied to these terms will experience slight increases in their equated monthly installments (EMIs).
Notably, the overnight and one-month MCLR rates will remain unchanged at 8.20%, while the two-year and three-year tenures have been set at 9.05% and 9.10%, respectively.
Tenure Latest MCLR (In %)
Overnight 8.2%
One Month 8.20%
Three Month 8.55%
Six Month 8.90%
One Year 9%
Two Years 9.05%
Three Years 9.10%
Floated in 2016, the MCLR is designed to mirror the cost of borrowing for banks, with the intention of enhancing transparency in lending rates. Borrowers with loans linked to the MCLR will experience adjustments in their rates in accordance with their designated reset periods.
The majority of retail loans, such as home and auto loans, are connected to the MCLR rate. Consequently, borrowers can anticipate an increase in their EMIs as a result of fluctuations in this rate.
Earlier this month, HDFC Bank adjusted its Marginal Cost of Funds-Based Lending Rates (MCLR) on two short-term tenures, increasing up to 5 basis points (bps). Following this revision, the MCLR interest rates offered by HDFC Bank will now fall within the range of 9.15% to 9.50%, effective from November 7, 2024.
Additionally, HDFC Bank’s benchmark Prime Lending Rate has been set at 17.95% p.a. as of September 9, 2024. The revised Base Rate will be 9.45%, which will also be in effect from September 9, 2024.
All lending rates offered by HDFC Bank are tied to the Policy Repo Rate, which currently stands at 6.50%. This includes special home loan rates for both salaried and self-employed individuals, ranging from 8.75% to 9.65%, as well as standard home loan rates, which vary from 9.40% to 9.95%, depending on the borrower’s employment status.
