The new rate will come into effect from October 19.The rates for other tenures remain unchanged.
The lender increased Marginal Cost of Funds Based Lending Rate (MCLR), with effect from August 15, 2024.
With the increase in the MCLR, the interest rates on loans are also likely to rise by a similar measure, and EMIs rise on linked loans.
State Bank of India has hiked the benchmark Marginal Cost of Lending Rates by 5-10 basis points across tenures. It had last raised the rates in mid-June.
Home loan repayment is something that most of us have to deal with. And with rising rates of MCLR, it becomes very crucial for a borrower to decide if switching to a repo-linked loan is optimum or not. Well, there are a few things that should be considered before making a decision. In this video, we have talked about all these subjects. Watch the video to find out.
If your home loan is linked to MCLR, switching to a repo-linked home loan rate can reduce your interest costs. However, do the math first and calculate the savings instead of relying on vague estimates.
The new rates will now range between 8 percent and 8.75 percent