SBI, Kotak Mahindra Bank latest MCLR, base rates: SBI loan borrowers, Kotak customers must know The revised base rate of SBI stands at 10.25%. Read here to know the latest MCLR from both SBI and Kotak Mahindra Bank
State Bank of India (SBI) and Kotak Mahindra Bank have updated their marginal cost of funds-based lending rates (MCLRs) and base rates.The latest MCLR(s) and base rates of SBI are effective from March 15, 2024, as per the bank's website. The revised base rate is 10.25%, the bank says on its website.
State Bank of India (SBI) latest MCLR from March 15, 2024
SBI MCLR overnight rate stands at 8%. The one-month MCLR is at 8.2% at SBI. Three-month MCLR stands at 8.2% as well. The six-month MCLR is at 8.55%, while the one-year MCLR stands at 8.65%. Most consumer loans are usually linked to a one-year MCLR. The two-year MCLR is at 8.75%. The three-year MCLR is at 8.85%.
TenureExisting MCLRRevised MCLROvernight8%8%One-Month8.20%8.20%Three-Month8.20%8.20%Six-Month8.55%8.55%One-Year8.65%8.65%Two-Years8.75%8.75%Three-Years8.85%8.85%Source: Bank website as of March 16, 2024.
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State Bank of India Benchmark Prime Lending Rate (BPLR)
SBI has revised its Benchmark Prime Lending Rate (BPLR) with effect from March 15, 2024. The BPLR stands at 15%. SBI External Benchmark Linked Rate (EBLR)
SBI's EBLR has not been revised and the existing rates which are effective from February 15, 2023, will continue. SBI's EBLR is 9.15%+CRP+BSP.Kotak Mahindra Bank's latest MCLR from March 16, 2024
The updated MCLR in Kotak Mahindra Bank is effective from March 16, 2024. Kotak Mahindra Bank's overnight MCLR stands at 8.65%. The one-month MCLR is at 8.9% while the three-month MCLR stands at 9.05%. The six-month MCLR is at 9.3%. The one-year MCLR is 9.45%, while the two-year MCLR is at 9.5%. The three-year MCLR is at 9.6% in the Kotak Mahindra Bank.TenureRateOvernight8.65%One Month8.90%Three Month9.05%Six Month9.30%One Year9.45%Two Year9.50%Three Year9.60%Source: Bank website as of March 16, 2024
What is MCLR?
According to the Kotak Mahindra Bank website, MCLR is the minimum rate below which banks cannot lend. It is an internal rate fixed by individual banks for loans with floating interest rates. The MCLR is linked to the marginal cost of funds, operating costs, cost of carrying in cash reserve ratio, and tenure premium. "When we look at MCLR vs base rate, MCLR uses the current cost of funds to determine the rate instead of the base rate that calculates it based on the average cost of funds," said Kotak Mahindra Bank on its website as of March 16, 2024.Can you change your loan's interest rate from the base rate to the MCLR rate?
According to HDFC Bank's website as of March 16, 2024, the Reserve Bank of India (RBI) has directed banks to allow base rate borrowers to switch to MCLR when there is a change in the policy rate. "However, before you decide, you should seek professional guidance. Financial advisors can provide you with updated information and guide you through the process of transfer," said HDFC Bank on its website.This story originally appeared on: India Times - Author:Faqs of Insurances
