Check SBI Latest MCLR Rates Effective from September 15, 2023
India”s largest public sector bank, the State Bank of India (SBI), has announced its latest marginal cost of funds-based lending rate (MCLR). The new rates came into effect on September 15, 2023. The MCLR is the minimum interest rate at which a bank can lend money to a customer.
SBI Latest MCLR Rates Effective from September 15, 2023
| Tenor | Existing MCLR (In %) | Revised MCLR (In %)* |
|---|---|---|
| Over night | 8.00 | 8.00 |
| One Month | 8.15 | 8.15 |
| Three Month | 8.15 | 8.15 |
| Six Month | 8.45 | 8.45 |
| One Year | 8.55 | 8.55 |
| Two Years | 8.65 | 8.65 |
| Three Years | 8.75 | 8.75 |
SBI announced its latest MCLR rate after the Reserve Bank of India (RBI) decided to keep its repo rate at 6.5 percent in August. This was the second consecutive meeting that the central bank had kept the repo rate unchanged. Previously, in its June meeting, the RBI had also not made any changes to the interest rate.
However, since March 2022, the RBI has raised the repo rate by 250 basis points to 6.5 percent.
All commercial banks” lending rates are linked to the RBI”s repo rate or Treasury Bill yield for better transmission of rate revisions. These rates act as the external benchmarks for banks” lending rates. As per RBI”s direction, banks need to link all new floating rate personal or retail loans and floating rate loans to Micro and Small Enterprises to external benchmarks.
The old rates are based on the MCLRs, which are determined by factors such as deposit rates, repo rates, operating costs, and the cost of maintaining the cash reserve ratio (CRR).
