Bank raises interest rates on repo rate-indexed loans
According to the bank’s website, the revised EBLR will be 7.5% and the RLLR would be 6.65% + CRP. The new interest rates will come into effect on June 1, 2022. Previously, the EBLR was 6.65%, while the Repo-Linked Lending Rate (RLLR) was 6.25%.
The public lender has been using an EBLR linked to the repo rate since January 2019. The EBLR remains the same and changes according to the Reserve Bank of India’s benchmark interest rate.
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What is EBLR?
According to the SBI Home Lending FAQ, “EBLR stands for External Benchmark Lending Rate. SBI has adopted the Repo Rate as an external benchmark to link its variable rate mortgages from 01.10.2019. It is a new interest rate structure. All variable rate mortgages will have interest rates tied to the external benchmark.
Additionally, SBI last week announced a 10 basis point hike in its marginal cost-based lending (MCLR) rates on loans. The new MCLR interest rates come into effect on May 15, 2022. According to the bank’s website, overnight, one-month, three-month and six-month MCLR rates have all been raised by 10 basis points. basis at 6.85%, 6.85%, 6.85% and 7.15%, respectively.
The MCLR for a one year term is 7.20%, two years 7.40% and three years 7.50%.