SBI Hikes MCLR: Brace for Potentially Higher EMIs on Home and Auto Loans
SBI MCLR hike raises borrowing costs! Learn how new rates could affect your home & auto loan EMIs. Explore potential impact and financial planning tips.
State Bank of India (SBI), the country's largest lender, has raised its marginal cost of funds-based lending rate (MCLR) on various durations by 5-10 basis points (bps), a move that could translate to increased EMIs for auto and home loans.
Key Points:
- SBI's MCLR hike comes despite the Reserve Bank of India (RBI) maintaining the repo rate at 6.5%.
- New rates range from 8.20% for a one-month tenure to 8.85% for a three-year tenure.
- SBI chairman Dinesh Kumar Khara assures limited scope for further MCLR hikes, but other banks could follow suit.
- Factors like credit-to-deposit ratio and growth requirements will influence individual bank decisions.
Impact on Borrowers:
- Existing borrowers may not see immediate changes, but new loans will reflect the higher MCLR rates.
- Increased EMIs could strain budgets, particularly for those with variable-rate loans.
- Careful financial planning and exploring fixed-rate loan options may be advisable.
Outlook:
- The overall cost of borrowing is likely to remain elevated in the near term.
- Monitoring future RBI actions and individual bank policies is crucial for loan applicants.
Remember: This is just a summary. For detailed information and personalized advice, consult with a financial advisor.
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