State Bank of India (SBI) has increased the marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps) with effect from July 15, 2023, according to the SBI website. MCLR is the lowest interest rate at which a bank can lend to a customer. The MCLR based rate will now range from 8% to 8.75%. The overnight MCLR rate was raised by 5 bps to 8% from 7.90%, while the one-month and three-month tenors were 8.15% from 8.10%. Among others, six-month MCLR increased by 5 bps to 8.45%. One-year MCLR linked to many consumer loans is now 8.55% from 8.50%. MCLR for two years and three years is 8.65% and 8.75% respectively.
| Tenor | Current MCLR (in %) | Revised MCLR (in %) |
| at night | 7.95 | 8 |
| a month | 8.1 | 8.15 |
| Three months | 8.1 | 8.15 |
| Six months | 8.4 | 8.45 |
| a year | 8.5 | 8.55 |
| Two years | 8.6 | 8.65 |
| Three years | 8.7 | 8.75 |
Source: SBI website
SBI EBLR/RLLR
SBI External Benchmark Lending Rates (EBLR) remain unchanged at 9.15%+CRP+BSP and RLLR at 8.75%+CRP, effective February 15, 2023.
Base rate
SBI base rate is 10.10% effective from 15 June 2023SBI BPLR
The Benchmark Prime Lending Rate (BPLR) has been revised to 14.85% pa with effect from June 15, 2023.
What should borrowers do?
Home mortgage borrowers have little control over changes in interest rates, but can ensure they are getting the best possible terms on their loans. Because of the peak in interest rates, most borrowers will pay the highest interest rate on their EMIs in the last three years. If you are an old borrower who was paying loans under earlier regimes like MCLR or base rate, switching to the new EBLR regime would be a great idea for you. This allows you to profit quickly from the drop in interest rates.
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