State Bank of India (SBI) clients suffered a major setback on Tuesday. The recent decision of the bank has a direct impact on the people who borrow from the bank. The bank made installments of all kinds of expensive loans including home and auto. In fact, the bank has increased the lending rates on the basis of the marginal cost (MCLR) of the fund for loans of various periods. The bank increased it by 0.15 percent.
The impact of the bank’s decision must be borne by all existing and new customers of the bank. This will make most consumer loans more expensive. The new rates are effective November 15, 2022. The Reserve Bank raised the repo rate by 50 basis points in its September 30 monetary review.
Find out how much MCLR increases
According to the notification posted on the SBI website, the one-year MCLR was increased by 0.10 percent to 8.05 percent. So far the rate has been 7.95 percent. Housing, auto, and personal loans are rates based on the one-year MCLR. The two- and three-year MCLR also increased by 0.10 percent to 8.25 percent and 8.35 percent, respectively. The 1-month and 3-month MCLR was increased by 0.15 percent to 7.75 percent. The six-month MCLR was increased by 0.15 percent to 8.05 percent and the one-day MCLR was increased by 0.10 percent to 7.60 percent.
Credit growth for banks will be 15 percent: Crisel
Credit growth so far this fiscal year has been around 18 percent, a Cresel report released on Tuesday said, the highest level in a decade. Aside from the current public finances, credit growth is likely to remain at 15 percent in the next fiscal year as well. According to the report, companies were seen waiting in queues for loans from major lenders. Apart from capital expenditure, companies also reach out to banks for loans to increase working capital. This is because they expect demand to rise as the economy does better. The State Bank of India (SBI) recorded a 20 percent growth in corporate loan sales in the second quarter. During this period, there was an increase in corporate loan provisions for all private-sector banks.
Latest business news