State Bank of India raises key loan benchmark rates, boosting EMIs for borrowers
SBI has lifted its External Benchmark Linked Lending Rate and Repo Linked Lending Rate, leading to higher monthly payments for loan customers.
The State Bank of India announced revisions to its benchmark lending rates that will take effect on October 15. The External Benchmark Linked Lending Rate moves to 8.15% + CRP + BSP, up from 7.90% + CRP + BSP, and the Repo Linked Lending Rate rises to 7.75% + CRP from 7.50% + CRP. In addition, the bank raised its Marginal Cost of Funds based Lending Rate for three-month, six-month, one-year, two-year and three-year tenures, while leaving the overnight and one-month rates at 7.85%.
As a result, borrowers with loans tied to these benchmarks will see higher equated monthly instalments. The bank’s benchmark prime lending rate remains at 14.65% per annum. Fixed-deposit interest rates for both general and senior citizens stay unchanged, ranging from 3.05% to 7.10% depending on tenure.
Why it matters
Higher benchmark rates mean increased loan costs for millions of SBI customers across India.
In this story
