SBI increased interest rates by 0.1% for all tenures, this will have an impact on consumer loans

State Bank of India, the largest public sector bank in the country, has announced a 0.1 percent increase in the 'Marginal Cost of Funds-Based Lending Rate' (MCLR) for all tenures. Due to this effect, most consumer loans will now become expensive. The bank has announced an increase in interest rates for the third consecutive time.

According to the information available on the SBI website, the standard MCLR for a period of one year has now been fixed at 8.95 percent, whereas earlier this rate was 8.85 percent. MCLR is used in the evaluation of most consumer loans such as motor vehicle and personal.

MCLR has been set at 9.10 percent for a three-year period and at 9.05 percent for a two-year period.

Apart from this, the rate of interest for one month, three months as well as for six months is within the BMI of 8.45-8.85 percent. For the 'overnight', now MCLR will be 8.20 percent as against 8.10 percent.

The new interest rates were effective from August 15, 2024, and this resetting of interest rates came in when only a few days ago, the Reserve Bank of India maintained its policy rate stable at 6.5% for the ninth time this month.