SBI hikes loan rates
State Bank has increased MCLR by 0.2 percent. At the same time, the deposit rates for different periods have also been increased.
The country’s largest lender State Bank of India (SBI) has increased its deposit and loan rates. The bank took this decision by the Reserve Bank (RBI) after the hike in repo rates. State Bank informed today that there has been an increase of 0.2 percent in both loan and deposit rates. Last week itself, the Reserve Bank had increased the repo rates by 0.5 percent, after which the repo rates increased to 4.9 percent. Banks take short-term loans from the Reserve Bank only at the repo rates. repo rates (Repo Rates) has also increased the cost of credit for banks. Due to which banks are increasing their lending rates.
How much increased deposit rates
SBI said that interest rates have been increased by 0.20 percent on domestic fixed deposits of less than Rs 2 crore for select tenors. According to the bank’s website, the revised interest rates on retail domestic fixed deposits (below Rs 2 crore) will be applicable from June 14, 2022. For tenures ranging from 211 days to less than 1 year, the bank will offer an interest rate of 4.60 per cent as against 4.40 per cent earlier. Senior citizens will now be given an interest of 5.10 percent as against 4.90 percent earlier. Similarly, for domestic fixed deposits ranging from 1 year to less than 2 years, customers can earn an interest of 5.30 per cent. For senior citizens, the interest rate will be 5.80 percent. On tenures ranging from 2 years to less than 3 years, SBI has increased the interest rate from 5.20 per cent to 5.35 per cent, while senior citizens can earn 5.85 per cent as against 5.75 per cent. The bank has revised interest rates up to 0.75 per cent on domestic bulk fixed deposits of Rs 2 crore and above.
How much increased loan rates
Along with this, State Bank has increased the marginal cost of funds based loan rates by 0.2 percent, the new rates will be applicable from June 15, 2022. According to the bank, the one-year benchmark MCLR has been increased from 7.2 percent to 7.4 percent. Most consumer loans like auto, home loans and personal loans are linked to MCLR. According to the bank, the one-year benchmark MCLR has been increased from 7.2 percent to 7.4 percent. Most consumer loans like auto, home loans and personal loans are linked to MCLR. While the Repo Linked Rates (RLLR) has been increased from 6.65 percent to 7.15 percent, the credit risk premium is also added to the Repo Linked Rates. These rates will also be applicable from June 15.
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