Getty ImagesState Bank of India (SBI) has hiked its external benchmark lending rate (EBLR) on home loan by 40 bps to 7.05% and RLLR would be 6.65%+CRP. The new interest rates will come into effect from June 1, 2022, as per SBI’s website.
Earlier, the EBLR was 6.65 per cent, while the Repo-Linked Lending Rate (RLLR) is 6.25 percent.
According to the SBI website, “External Benchmark based Lending Rate (EBLR) = External Benchmark Rate (EBR) + Credit Risk Premium (CRP).”
When offering any type of loan, including house and vehicle loans, banks add a Credit Risk Premium (CRP) over the EBLR and RLLR.
Since January 2019, SBI has used an EBLR linked to the repo rate. The EBLR rate remains unchanged, and it fluctuates in accordance with the Reserve Bank of India's benchmark interest rate (RBI).
Last week, SBI announced that it had yet again increased its marginal cost-based lending rates (MCLR) on loans by 10 basis points (bps). The new MCLR interest rates are effective from May 15, 2022.
According to the SBI website, the overnight, one-month, three-month, and six-month MCLR rates have all been raised by 10 basis points to 6.85 percent, 6.85 percent, 6.85 percent, and 7.15 percent, respectively. Similarly, MCLR for tenor of one year stands at 7.20 percent, two year at 7.40 percent and three years at 7.50 percent.
Also read: SBI increases MCLR on loans: Check latest interest rates here
Important FAQs to note
What is EBLR?
According to SBI home loans FAQ, “EBLR stands for External Benchmark Lending Rate. SBI has adopted Repo Rate as the external benchmark to link its floating rate home loans with effect from 01.10.2019.
It is a new interest rate structure. All floating rate home loans will have interest rates linked to External Benchmark. The Repo Linked Loan Rate (RLLR) is related to or based on the RBI's repo rate, which is updated on a regular basis. The RLLR of each bank is different. Every time the repo rate changes, the RLLR is adjusted.
Can existing borrowers avail the benefits of the new interest rate?
Yes, floating rate home loan borrowers with regular account conduct as on the date of switch over, can be migrated to the new interest rate structure.
What are the charges for migrating to the new structure?
One time switch over fee of Rs. 1000/-* + taxes is applicable. *Conditions apply.
Earlier, the EBLR was 6.65 per cent, while the Repo-Linked Lending Rate (RLLR) is 6.25 percent.
According to the SBI website, “External Benchmark based Lending Rate (EBLR) = External Benchmark Rate (EBR) + Credit Risk Premium (CRP).”
When offering any type of loan, including house and vehicle loans, banks add a Credit Risk Premium (CRP) over the EBLR and RLLR.
Since January 2019, SBI has used an EBLR linked to the repo rate. The EBLR rate remains unchanged, and it fluctuates in accordance with the Reserve Bank of India's benchmark interest rate (RBI).
Last week, SBI announced that it had yet again increased its marginal cost-based lending rates (MCLR) on loans by 10 basis points (bps). The new MCLR interest rates are effective from May 15, 2022.
According to the SBI website, the overnight, one-month, three-month, and six-month MCLR rates have all been raised by 10 basis points to 6.85 percent, 6.85 percent, 6.85 percent, and 7.15 percent, respectively. Similarly, MCLR for tenor of one year stands at 7.20 percent, two year at 7.40 percent and three years at 7.50 percent.
Also read: SBI increases MCLR on loans: Check latest interest rates here
Important FAQs to note
What is EBLR?
According to SBI home loans FAQ, “EBLR stands for External Benchmark Lending Rate. SBI has adopted Repo Rate as the external benchmark to link its floating rate home loans with effect from 01.10.2019.
It is a new interest rate structure. All floating rate home loans will have interest rates linked to External Benchmark. The Repo Linked Loan Rate (RLLR) is related to or based on the RBI's repo rate, which is updated on a regular basis. The RLLR of each bank is different. Every time the repo rate changes, the RLLR is adjusted.
Can existing borrowers avail the benefits of the new interest rate?
Yes, floating rate home loan borrowers with regular account conduct as on the date of switch over, can be migrated to the new interest rate structure.
What are the charges for migrating to the new structure?
One time switch over fee of Rs. 1000/-* + taxes is applicable. *Conditions apply.
( Originally published on May 23, 2022 )
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