Loan EMIs expensive, SBI hikes interest rates for second time in a month 2023

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SBI Home Loan EMI Increase: The common man has been controlled by inflation. In addition, the EMI burden on people is also increasing due to continuous increase in loan interest rates. SBI has increased lending rates for the second time in a month.

The new interest rate will take effect from January 15, 2023.

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SBI loan interest rate hike: The common man, burdened by inflation, will now have to bear costly EMIs. The country’s largest bank SBI has announced its second interest rate hike in a month. The new interest rate will take effect from January 15, 2023.

The Reserve Bank of India has continuously increased repo rates to control inflation. This affects interest rates on home loans, car loans and personal loans. Most banks increased interest rates after the repo rate hike in December. Then SBI increased interest rates from December 15, 2022.

SBI loans are more expensive

SBI increases lending rates by 0.10%. The bank implements this interest rate increase based on the marginal cost of capital. As a result, interest rates on some fixed-term bank loans have increased. Because of this, the EMIs of bank loan customers are bound to increase.

The 1-year loan interest rate has increased

SBI has increased lending rates for a year. Now it will be 8.4% instead of 8.3%. In which the 2-year loan interest rate is 8.5% and the 3-year loan interest rate is kept at 8.6%.

However, the bank kept MCLR interest rate at 7.85% even for overnight term loans. Loan interest rates from 1 month to 6 months are also fixed as before. 1 month out of 3 months will be 8%. At the same time, there will be an 8.3% loan for a period of 6 months.

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What is MCLR?

The interest rates on loans disbursed by banks are determined only on the basis of MCLR. MCLR is the minimum interest rate at which banks cannot lend to customers. Based on these interest rates, banks set interest rates for home loans, car loans, personal loans and other consumer loans.