SBI Home Loan EMI Hike: Common people are already under the grip of inflation. Apart from this, the EMI burden on the people is also increasing due to the continuous increase in loan interest rates. SBI has hiked loan interest rates for the second time in a month.
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SBI Loan Interest Rate Increase: The common man, burdened by inflation, is now going to be saddled with costly EMIs. The country’s largest bank SBI has announced a second rate hike in a month. The new interest rates will be effective from January 15, 2023.
The Reserve Bank of India has been continuously increasing the repo rate to control inflation. This affects interest rates on home loans, car loans and personal loans. Most banks hiked their interest rates after the repo rate hike in December. Then SBI implemented increased interest rates from 15 December 2022.
SBI loans are more expensive
SBI hiked loan interest rates by 0.10 percent. The bank made this increase in the interest rate based on the marginal cost of funds. Due to this, the interest rate of some fixed term bank loans has increased. Because of this, the EMI of bank loan customers is sure to increase.
Interest rates on one-year loans have increased
SBI has hiked interest rates on loans for one year. Now it will be 8.4 percent instead of 8.3 percent. Where the interest rate of two-year term loan is 8.5 percent and the interest rate of 3-year term loan is kept at 8.6 percent.
However, the bank has kept the MCLR i.e. interest rate at 7.85 per cent even on overnight term loans. The interest rate for loans of 1 month to 6 months has also been fixed as before. 1 month for 3 months will be 8 percent. At the same time there will be 8.3 percent loan for 6 months period.
What is MCLR?
The interest rate on loans disbursed by banks is determined on the basis of MCLR only. MCLR is the minimum interest rate below which a bank cannot lend to a customer. Based on these interest rates, the bank sets the interest rates for its home loans, car loans, personal loans and other consumer loans.
Ahead of SBI, HDFC Bank, Bank of Baroda, Union Bank of India, ICICI Bank and PNB have also hiked their lending rates in January 2023.