SBI home loan interest rates in September 2023

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The State Bank of India (SBI)’s latest marginal cost of funds-based lending rate (MCLR) is effective from September 15, 2023, according to the SBI website. The MCLR is the lowest interest rate at which a bank can make a loan to a customer.Also read: Reset of floating rate home loan EMIs to get more transparent, option to switch to fixed interest rate soon: RBI

The bank revised Benchmark Prime Lending Rate to 14.95% from 14.85%, effective from September 15, 2023.

The MCLR-based rates will now range between 8% and 8.75%. The overnight MCLR rate stands at 8%, while that of one month and three-month tenure is 8.15%. Among others, the six-month MCLR stands at 8.45%. The one year MCLR which is linked to many consumer loans is now at 8.55%. For tenure of two years and three years MCLR is 8.65% and 8.75%, respectively.


SBI external benchmark lending rates (EBLR) remain unchanged at 9.15%+CRP+BSP and RLLR at 8.75%+CRP with effect from February 15, 2023.Base Rate
SBI base rate is at 10.10% effective from June 15, 2023.

Benchmark Prime Lending Rate (BPLR) revised as 14.95% p.a. effective from September 15, 2023.

According to the Kotak Mahindra Bank, “The Benchmark Prime Lending Rate introduced in 2003 by the Reserve Bank of India (RBI) was the interest rate charged by commercial banks to its customers. An internal benchmark rate, it was used to set the interest rate for home loans. BPLR was calculated based on the average cost of funds. However, BPLR lacked transparency as lenders could lend below it to some privileged customers. So, in 2010, the Reserve Bank of India introduced the Base Rate system, which replaced the BPLR system.”

The new lending regime implemented by the RBI in October 2019 required banks to link the interest rate provided on house loans to any of the selected external benchmarks. Banks were permitted to charge a spread in excess of the external benchmark. The banks are free to charge a spread over the external benchmark, according to the circular. The circular, however, severely bars them from lending below the external benchmark rate.

Festive season home loan offer
State Bank of India (SBI) is running a special campaign on home loans offering concessions up to 65 basis points (bps). The concession is applicable on regular home loan, flexipay, Nri, non-salaried, privilege, Apon Ghar. The last date for concession on home loans is till December 31, 2023.

Also read: Festive season home loan offer: SBI offers up to 65 bps concession on home loan interest rate to these borrowers

What are the charges for migrating to the new structure?
SBI charges a one time switchover fee of Rs. 1000 plus taxes is applicable.

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