SBI Hikes Lending Rates By 10 Bps: Check Out Latest FD, Home Loan Interest Rates Here

State Bank of India (SBI) has hiked its Marginal Cost Of Funds Based Lending Rate (MCLR), effective August 15, 2024. The new lending benchmark rates have been increased by 10 basis points, which is likely to make EMIs on term loans costlier. However, not all borrowers will be impacted by the same. Here are the latest FD and home loan rates of SBI amid the MCLR hike.

SBI MCLR Hike:

1-Year MCLR is hiked by 10 bps to 8.95% from earlier 8.85%. In 2 years and 3 years, MCLR increased to 9.05% and 9.10% from the previous rates of 8.95% and 9% respectively.

Six-month MCLR is up to 8.85% from the previous 8.75%. Also, 3-month and one-month MCLR rates increased to 8.50% and 8.45% compared to earlier rates of 8.40% and 8.35% respectively.

Lastly, the shortest tenure on MCLR is overnight which will now offer a rate of 8.20% from the earlier 8.10%.

MCLR is the minimum interest rate for term loans below which banks cannot lend to borrowers. When banks revise MCLR, the interest rates on loans linked with this benchmark are also changed.

With the hike in MCLR rates, the equated monthly instalments (EMIs) are likely to go up on term loans such as home loans, personal loans, and car loans among others.

However, not every borrower will be impacted by this MCLR hike.

That is because, from October 1, 2019, RBI introduced external benchmark lending rates including linking lending rates with policy repo rates. And directed the scheduled commercial banks to transmit to external benchmarks since MCLR did not deliver effective transmission of monetary policy. However, existing loans and credit limits linked to the MCLR/Baserate/BPLR will continue till repayment or renewal, as the case may be.

Accordingly, not all borrowers will be affected by the hike in MCLR by the Bank of Baroda.

Latest SBI Home Loans and FD Rates:

SBI Home Loan Rates:

Currently, the highest rate offered by SBI on FDs below Rs 3 crore is 7% to the general category for tenures of 2 years to less than 3 years. The rate is at 6.75% on 3 years to less than 5 years tenure, and 6.50% each on 211 days to less than 1 year tenure and 5 years and up to 10 years tenure.

There is 6.80% also offered on 1 Year to less than 2 years tenure. Further, the rates are from 3.50% to 6.25% on 7 days to 210 days tenures for general category individuals.

Coming to senior citizens, the highest FD rate is 7.50% on 2 years to less than 3 years, and 5 years and up to 10 years tenures. While SBI is offering 7.30% on 1 Year to less than 2 years tenure, a rate of 7.25% on 3 years to less than 5 years, and a 7% rate on 211 days to less than 1-year tenure.

On short-term tenures like 7 days to 210 days, SBI is offering FD rates ranging from 4% to 7% to senior citizens.

SBI Home Loan Rates:

All home loans are linked to external benchmark rates. Currently, EBLR is at 9.15% at SBI which is the benchmark rate below which loan interest rates cannot go. The 9.15% is a mixture of repo rate of 6.50% + spread 2.65%.

General home loan rates range from 8.50% to 9.65% at SBI, while home loan MAXGAIN scheme offers 8.70% to 9.85% rates. While the rates are 8.80% to 11.30% on top-up home loans.

SBI's Tribal Plus Home Loan scheme offers 8.60% to 9.55%.