State Bank of India has announced its latest marginally linked marginal cost of lending rates (MCLR) following other banks, SBI has also kept the rates unchanged.
Many banks including ICICI Bank, Union Bank, Bank of Baroda have kept their MCLR rates unchanged following the RBI, as it kept the repo rate unchanged in its April monetary policy meet.
Latest SBI MCLR
The overnight MCLR rate is 7.90%, while that of one month tenure is 8.10%. The three-month MCLR is 8.10% Among others, the six-month MCLR stands at 8.40% and 8.50% on one-year tenure. For tenure of two years and three years MCLR is 8.60% and 8.70%, respectively. These rates are effective from May 15, 2023.
How much home loan can you get against salary, other income? Check calculation here
| Tenor | Existing MCLR (In %) | Revised MCLR (In %)* |
| Over night | 7.95 | 7.95 |
| One Month | 8.1 | 8.1 |
| Three Month | 8.1 | 8.1 |
| Six Month | 8.4 | 8.4 |
| One Year | 8.5 | 8.5 |
| Two Years | 8.6 | 8.6 |
| Three Years | 8.7 | 8.7 |
According to the SBI website, for customers with credit scores of 750 or higher, the regular home loan interest rate has a minimum of 9.15% (EBR+0 %) No risk premium is applied in this situation. For 7CIbil Score between 700-749, interest rate applied is 9.35%, here risk premium is 20 basis points (bps). The bank offers 9.45% interest rate for Cibil score between 650-699. These rates are effective from May 1, 2023. For Cibil Score between 550-649, bank applies interest rate of 9.65% for regular home loans. Note that interest rate for Max gain is not same as regular home loans.
The risk premium is determined by the credit score, and the worse the credit score, the higher the risk premium.
Subscribe to The Economic Times Prime and read the ET ePaper online.
Prime Exclusives Investment IdeasStock Report PlusePaperWealth Edition
