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SBI MCLR Rate Today

MCLR (Marginal Cost of Funds Based Lending Rate) is the minimum rate of interest below which banks and other financial institutions cannot lend to the customers, except in certain cases. The current SBI MCLR rate for 1-year is 7.70%.

Updated:

Current SBI MCLR Rate

The State Bank of India (SBI) links its rates for lending products to MCLR. The current SBI MCLR rate ranges from 7.35% to 8.00% for different tenures. While the 1-year MCLR rate has been revised at 7.95% p.a. the rates for different tenures have also increased. The Equated Monthly Instalments (EMIs) of different loan products like SBI Home Loans, personal loans, etc. are connected to the MCLR of the bank and would be increased as a result of this.

Also Read: Home Loan for Salaried Person

MCLR Rate of SBI

Marginal Cost of Funds Based Lending Rates or MCLR rate of SBI for different tenures with effect from 15.09.2022 are given below:

TenureExisting MCLR (in %)Revised MCLR (in %)
Overnight7.357.60
1 Month7.357.35
3 Month7.357.35
6 Month7.657.90
1 Year7.707.95
2 Years7.908.15
3 Years8.008.25

Additional Info: Also Apply Section 80CCD

SBI MCLR Rate Trend

Following are the changing trends in SBI MCLR rates: 

MCLR for different tenures from 10.06.2020

Overnight1 Month3 Month6 Month1 Year2 Year3 Year
6.706.706.756.957.007.207.30

MCLR for different tenures from 10.07.2020 to 14.04.2022

Overnight1 Month3 Month6 Month1 Year2 Year3 Year
6.656.656.656.957.007.207.30

MCLR for different tenures from 15.04.2022

Overnight1 Month3 Month6 Month1 Year2 Year3 Year
6.756.756.757.057.107.307.40

MCLR for different tenures from 15.05.2022

Overnight1 Month3 Month6 Month1 Year2 Year3 Year
6.856.856.857.157.207.407.50

MCLR for different tenures from 15.06.2022

Overnight1 Month3 Month6 Month1 Year2 Year3 Year
7.057.057.057.357.407.607.70

MCLR for different tenures from 15.08.2022

Overnight1 Month3 Month6 Month1 Year2 Year3 Year
7.157.157.157.457.507.707.80

MCLR for different tenures from 15.09.2022

Overnight1 Month3 Month6 Month1 Year2 Year3 Year
7.357.357.357.657.707.908.00

MCLR for different tenures from 15.10.2022

Overnight1 Month3 Month6 Month1 Year2 Year3 Year
7.357.357.357.657.707.908.00
  • With effect from 01.04.2016, Reserve Bank of India (RBI) has directed SBI to fix its interest rates for loans benchmarked to MCLR. Before that, SBI used to fix its interest rates with Base Rate. 
  • The MCLR rates of SBI are currently the highest since 10.06.2020.
  • The sudden breakout of the COVID-19 pandemic resulted in the reduction of RBI’s Repo Rate as well as the MCLR rate of SBI and other banks.
  • Currently, the MCLR of SBI range from 7.35% to 8.00% for different tenures since 15.09.2022.
  • RBI has permitted banks (including SBI) to set their own MCLR based on their Marginal Cost of Funds, which is the cost of raising new funds for the bank. Therefore SBI determines and announces its MCLR regularly based on a pre-described formula and the changes in the policy rate by RBI in its monetary policy.
  • The RBI only announces the Repo Rate. It does not determine the MCLR of any bank.
  • SBI may or may not change its MCLR rate in line with the changes in the Repo Rate. 
  • SBI may revise its MCLR every month or retain the same MCLR for a longer period.
  • As per the RBI’s latest regulations with effect from 01.04.2019, all floating retail loans interest rates must be liked with the external benchmark lending rates, i.e. RBI’s Repo Rate, 3-Month Treasury Bill Yield, 6-Month Treasury Bill Yield or other benchmark rates as published by the Financial Benchmarks India Pvt. Ltd.

Also Check: Monetary Policy

SBI Home Loan Interest Rate & MCLR

  • All floating rate loans in SBI, including home loans, are benchmarked to Repo Rate Lending Rate (RLLR) as the bank adopted Repo Rate as the external benchmark to link its floating rate home loans with effect from 01.10. 2019. However, customers can switch to MCLR from RLLR-based home loan interest rates by requesting the bank. 
  • If you wish to switch your SBI home loan linked to MCLR/base rate to RLLR/EBR, you can visit your branch and give a written application in a specific format along with a one-time service charge of Rs. 5,000 plus GST. 
  • Loans with long tenures like Home Loans are linked to longer duration MCLR.
  • SBI has increased its RLLR from 7.35% to 8.00% with effect from 15.09.2022. The move by SBI to hike its EBLR comes days after the RBI has increased its Repo Rate to 5.90%.

Tip: 50 Lakh Home Loan EMI Interest Rate 2022 before applying for a loan

SBI  1 Year MCLR

The current SBI MCLR for 1 year is 7.70% . Below are the details of SBI 1 year MCLR from 15.05.2021 to 15.09.2022:

Revised Date1 Year MCLR
15.10.20227.70%
15.09.20227.70%
15.08.20227.50%
15.06.20227.40%
15.05.20227.20%
15.04.20227.10%
15.03.20227.00%
15.02.20227.00%
15.01.20227.00%
15.12.20217.00%
15.11.20217.00%
15.10.20217.00%
15.09.20217.00%
15.08.20217.00%
15.07.20217.00%
15.06.20217.00%
15.05.20217.00%

Tip: Check Tax Benefit on Second Home Loan before applying for a loan

SBI MCLR Base Rate History

Below is the table for SBI MCLR history from 2011 till now:

Revised DateOvernight MCLR1 Month MCLR3 Month MCLR6 Month MCLR1 Year MCLR2 Year MCLR3 Year MCLR
15.10.20227.357.357.357.657.707.908.00
15.09.20227.357.357.357.657.707.908.00
15.08.20227.157.157.157.457.507.707.80
15.06.20227.057.057.057.357.407.607.70
15.05.20226.856.856.857.157.207.407.50
15.04.20226.756.756.757.057.107.307.40
15.03.20226.656.656.656.957.007.207.30
15.02.20226.656.656.656.957.007.207.30
15.01.20226.656.656.656.957.007.207.30
15.12.20216.656.656.656.957.007.207.30
15.11.20216.656.656.656.957.007.207.30
15.10.20216.656.656.656.957.007.207.30
15.09.20216.656.656.656.957.007.207.30
15.08.20216.656.656.656.957.007.207.30
15.07.20216.656.656.656.957.007.207.30
15.06.20216.656.656.656.957.007.207.30
15.05.20216.656.656.656.957.007.207.30

Additional Info: Also check SBI Balance Check Number

SBI MCLR Rate FAQs

Which Bank has Lowest MCLR Rate?

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Currently, Citibank has the lowest MCLR rate. The Citibank MCLR Base Rate ranges from 5.90% to 6.75% since 07.09.2022.

What is the Current SBI MCLR Rate?

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The current SBI MCLR rate ranges from 7.35% to 8.00% for different tenures.

Is MCLR decided by RBI?

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No, marginal cost of funds-based lending rate (MCLR) is the minimum rate of interest that a bank can lend at. MCLR is a tenure-linked internal benchmark, which means that the rate is determined internally by banks depending on the period left for the loan repayment.

What is MCLR and how it is calculated?

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MCLR (Marginal Cost of Funds Based Lending Rate) is the minimum rate of interest below which banks and other financial institutions cannot lend to the customers, except in certain cases. MCLR is calculated based on the loan tenure, i.e., the period a borrower gets to repay the loan. This tenure-linked benchmark is internal in nature. The bank decides the actual lending rates by adding the elements spread to MCLR. Then the banks publish their MCLR after a careful inspection

What is the MCLR Rate?

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MCLR (Marginal Cost of Funds Based Lending Rate) is the minimum rate of interest below which banks and other financial institutions cannot lend to the customers.

What is the meaning of 1 year MCLR?

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1-year MCLR means that even if the RBI reduces its Repo Rate thrice a year, the bank will change the MCLR rate only once a year.

What is 3 year MCLR Rate?

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The 3 year MCLR rate of SBI is 8% as of now.

What is the SBI RLLR Home Loan Rate?

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SBI has increased its RLLR from 7.15% to 7.65% with effect from 15.09.2022. The current SBI RLLR-linked home loan rates range from 8.15% to 9.05% p.a.

EBLR vs MCLR which is better?

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In external benchmark-linked lending rate (EBLR), banks kink the lending rates to a benchmark like repo rate or Treasury Bill Rates (TBLR). Hence, if there is a hike in repo rate, it could increase the EBLR as well, making loans costlier.

In MCLR, an internal benchmark rate is arrived as the minimum interest rate below which the bank cannot lend. To arrive at this rate, banks have to work out the marginal cost of funds that it lends to a customer. So MCLR is arrived as Marginal cost of funds + Loan tenure based premium + Banks cost for maintaining its cash reserve ratio (CRR) with RBI.

The latest version of EBLR is more popular and it makes banking more sophisticated. The floating rate concept in EBLR gives the better interest rate offer to borrowers than MCLR.

Which is Better MCLR or Repo Rate?

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If your loan is with a bank which is marred by a liquidity crisis, cuts in Repo Rate would have a minimal or no effect on your loan’s lending rate. In such cases, you should opt for switching to the repo rate regime.