Not getting relief from EMI, banks are still increasing interest

State Bank of India, the country’s largest government bank, has once again shocked its crores of customers. The bank has increased its marginal cost of lending rate by 5 basis points. The bank has implemented the new rates from 15 July 2023. According to the information given on the official website of the bank, the MCLR ranges from 8 per cent to 8.75 per cent for different periods. After this increase, the EMI burden of home loan, car loan, education loan, personal loan etc. will increase on the customers of the bank.
How much is the EMI on different tenures?
Earlier, the country’s largest bank had hiked its benchmark prime lending rates (BPLR) by 70 basis points with effect from March 15, 2023. SBI’s overnight MCLR has increased from 7.95 per cent to 8.00 per cent. At the same time, the one month MCLR has increased from 8.10 per cent to 8.15 per cent. While the 3-month MCLR has increased from 8.10 per cent to 8.15 per cent, the 6-month MCLR has increased from 8.40 per cent to 8.45 per cent. The one-year MCLR has increased from 8.50 per cent to 8.55 per cent, the two-year MCLR from 8.60 per cent to 8.65 per cent and the three-year MCLR from 8.70 per cent to 8.75 per cent.
The interest rate is increasing even after the repo rate is stable
Significantly, since the inflation was controlled, the Reserve Bank has not made any change in the repo rate for a long time. It is stable at 6.50 per cent. At the same time, since May 2022, the central bank has increased the repo rate by a total of 2.25 percent, but after controlling inflation in June 2023, the Reserve Bank has not made any change in the repo rate. Even after this decision, banks are continuously increasing their interest rates. Due to this, the customers are being hit by the expensive interest rate.
hdfc interest rates
Before SBI, the country’s largest private sector bank HDFC Bank also increased its interest rates. HDFC Bank had increased the MCLR by 15 percent. This increase has been done on loans of some selected duration. The new rates have come into effect from 7 July 2023.