State Bank of India has announced an increase of 0.05% in the margin cost of funds-based landing rate (MCLR) for some periods. This has made taking all types of loans expensive.
The country’s largest public sector bank SBI has announced an increase in MCLR rates, which has made taking a loan from the bank more expensive. In fact, the bank has announced an increase of 0.05% in the margin cost of fund-based landing rate (MCLR) in some periods. The one-year MCLR, a key period to which long-term loans are linked, has been increased to 9% on Friday.
The one-year MCLR rate determines the rate of loans like personal, vehicle and housing. The bank has recently increased the MCLR twice. Bank chairman CS Shetty said that 42 percent of the bank’s loan segment is linked to MCLR, while the rest is based on external benchmarks.
What did the SBI chairman say
He also clarified that the deposit rates in the banking system are at their highest level. SBI has also increased the MCLR of three and six months. The MCLR of one day, one month, two years and three years has been maintained. SBI Chairman CS Shetty said that 42 percent of the bank’s loan segment is linked to MCLR, while the rest of the loan is based on external benchmarks. SBI has also increased the MCLR of three and six months. However, there is no change in the MCLR of one month, two years and 3 years.
Earlier, SBI had increased the ‘Marginal Cost of Funds-based Lending Rate’ (MCLR) in August. The MCLR was 9.10 percent for three years and 9.05 percent for two years. This increase has been done despite RBI not making any change in its policy rates.
