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These rates, effective from March 15, 2024, will impact interest on home loans, personal loans, and car loans.
The bank has kept the rates unchanged
across all tenures.
The overnight and one-month MCLR stands at 8.20%. The three-month MCLR is 8.55%, and the six-month MCLR is 8.90%. The one-year MCLR, often tied to auto loans, is set at 9%.
The two- and three-year MCLRs are 9.05% and 9.10%, respectively.
| Tenure | Revised MCLR (In %) |
| Over night | 8.2% |
| One Month | 8.20% |
| Three Month | 8.55% |
| Six Month | 8.90% |
| One Year | 9% |
| Two Years | 9.05% |
| Three Years | 9.10% |
(Source: SBI website)
The MCLR system, introduced by the Reserve Bank of India in 2016, aims to enhance transparency in lending rates and better reflect the bank’s cost of funds. This system allows banks to revise their lending rates more frequently based on changes in market conditions.
The MCLR serves as the benchmark for various types of loans, including home loans, car loans, and personal loans.
Borrowers with loans linked to MCLR experience rate changes in their monthly instalments (EMIs) as the rates are reset. These revisions depend on the reset period of the loan, meaning borrowers may see either an increase or decrease in their EMIs depending on the current MCLR rate and their loan tenure.
For example, with the new rates, home loan borrowers and car loan customers may notice a rise in their EMI payments as the MCLR adjustments take effect.
