SBI Home, auto loan borrowers alert! EMIs to go up, bank hikes lending rates
Zee News
However, the higher EMIs will only be applicable to the borrowers who have availed loans on MCLR.
New Delhi: State Bank of India (SBI) home and auto loan customers will be burdened a little more EMI as the bank has hiked its lending rates. The revised MCLR rate is effective from April 15, as per the SBI website.
The country's largest lender has raised its marginal cost of funds based lending rate (MCLR) by 10 basis points (bps) or 0.1 percent across all tenures. Higher MCLR rate means that borrowers will have to pay an increased in EMIs.
However, the higher EMIs will only be applicable to the borrowers who have availed loans on MCLR. It will not be applicable for borrowers who have taken loans linked to other benchmarks.
SBI's EBLR rate is 6.65 per cent, while the repo-linked lending rate (RLLR) is 6.25 effective April 1.
Banks add Credit Risk Premium (CRP) over the EBLR and RLLR while giving any kind of loan including housing and auto loans.
