The State Bank of India (SBI) has increased the marginal cost of funds-based lending rate (MCLR) on one-year loans by ten basis points. The new rates went into effect on January 15.
Notably, SBI is currently offering a certain discount on home loans as part of its festive offer campaign, which is set to end on January 31, 2023.
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According to SBI’s website, the 1-year MCLR has been raised to 8.4% from 8.30% as of January 15. Other tenures’ MCLR has remained unchanged.
As a result, the MCLR of two and three years remains at 8.50% and 8.60%, respectively. While the one-month and three-month MCLRs remain unchanged at 8%. The overnight MCLR remains at 7.85%.
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Notably, the bank began a festive campaign on October 4 and the offer is valid until January 31, 2023.
The bank is currently offering a concession ranging from 15 bps to 30 bps in various home loan categories as part of this festive offer. It should be noted that SBI’s home loan rates are determined by a borrower’s CIBIL score. The lower the interest rate on home loans, the higher your credit score.
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Home loan rates from SBI are being reduced by 15 basis points (bps) for borrowers with CIBIL scores of at least 800, bringing the rate down from 8.90% to 8.75%. Home loans have a 25 basis point reduction from their standard rate of 9% to 8.75% for credit scores between 750 and 799. Additionally, home loans have a concession of 20 basis points to 8.90% from their standard rate of 9.10% for credit scores of 700 to 749.
However, the interest rates for mortgages with credit scores under 700 remain the same. As a result, the SBI rate is 9.20% for credit scores between 650 and 699, 9.40% for scores between 550 and 649, and 9.10% for NTC/NO CIBIL/-1.
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“Floor Rate: 15 bps lower than EBR (i.e. 8.75%), EBR at present- 8.90%,” SBI stated in its revised offer. Additionally, it was stated that the rates include a 5 bps concession for female borrowers as well as a 5 bps concession. Additionally, salary account holders for Privilege, Shaurya, and Apon Ghar are also eligible for these rates.
“Premium of 10 bps for loans up to 30 lacs for LTV >80% & < =90% shall continue to be charged hitherto,” the bank also added.
For top-up loans, credit scores from 700 to 800 or higher are each given a 15 basis point discount.
In comparison to the normal rate of 9.30%, under-the-table loans have an interest rate of 9.15% for credit scores greater than or equal to 800, 9.25% for scores between 750 and 799, and 9.35% for scores between 700 and 749.
The interest rates remain the same for credit scores under 700. The bank, therefore, keeps charging 9.60% for credit scores between 650 and 699, 9.90% for scores between 550 and 649, and 9.50% for NTC/NO CIBIL/-1 scores.
SBI offers a 30 basis point discount on credit scores between 700 and 800. As a result, the rate is 10.35% compared to the typical rate of 10.65% for CIBIL scores greater than or equal to 800, 10.45% compared to the typical rate of 10.75% for scores between 750 and 799, and 10.55% compared to the typical rate of 10.85% for scores between 700 and 749.
Other rates remain the same. The bank continues to charge 10.95% for credit scores between 650 and 699, 11.05% for scores between 550 and 649, and 10.85% for scores between NTC/NO CIBIL/-1.
