SBI Customers: You Will Have To Shell Out A Higher EMI As MCLR Hiked Again

SBI, the leading lender amid interest rate hike has also increased the marginal cost of lending rate. This rate hike shall then be cumbersome for borrowers implying higher EMI costs to them.

As per the bank's website, overnight, one-month and three-month MCLR has increased from 7.05% to 7.15%. Likewise, the MCLR on six-month tenure will now stand at 7.45% against 7.35%. Accordingly, the one-year MCLR rate has been hiked from 7.4% to 7.5%.

SBI Customers: You Will Have To Shell Out A Higher EMI As MCLR Hiked Again

It is a pertinent fact that rate hike in the economy predominantly via repo rate hike which is the rate at which central bank lends money to commercial banks leads to pass on of interest more spontaneously in the case of loans as against deposits.

The lender has resorted to hiking this rate for the second time in a month. Last the rates were revised on June 15, 2022.

MCLR rate is primarily the rate below which banks are not allowed to extend loans.

So, considering the hike, existent borrowers of SBI will need to shell out a higher interest rate and hence a higher EMI outgo.

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