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 Navigating the SBI MCLR Hike: What It Means for Your Loans and EMIs

Navigating the SBI MCLR Hike: What It Means for Your Loans and EMIs

Introduction: SBI MCLR SBI MCLR Hike

The State Bank of India (SBI), a major player in the Indian banking sector, has recently announced an adjustment in its Marginal Cost of Funds Based Lending Rates (MCLR), impacting loan and EMI structures for numerous customers. In this article, we delve into the implications of this change and what it means for borrowers.

Understanding the MCLR Hike

The MCLR system, introduced in April 2016, determines the minimum interest rate for loans. SBI’s recent hike in MCLR by 5-10 basis points marks a notable shift. The one-month and three-month MCLR rates have risen from 8.15% to 8.20%, while the six-month rate is up from 8.45% to 8.55%. Notably, the one-year MCLR has increased from 8.55% to 8.65%, with two and three-year MCLRs moving up to 8.75% and 8.85% respectively.

Impact on Loans and EMIs

This increment in MCLR translates to higher interest rates on various loans, including home, auto, and personal loans. Consequently, borrowers may experience an increase in their Equated Monthly Installments (EMIs). It’s important for existing and prospective loan holders to understand how these changes could affect their financial planning.

Exceptions and Considerations

It’s crucial to note that fixed-rate home loans are not affected by the MCLR changes. Furthermore, the MCLR at the time of sanctioning a floating-rate home loan remains constant until the next reset date, as per the Reserve Bank of India’s guidelines.

Navigating Through the Change

For borrowers with floating-rate loans, exploring refinancing options or negotiating with the bank for better terms can be beneficial strategies. Staying informed and proactive can help manage the financial impact effectively.


The MCLR hike by SBI is a significant development for borrowers across India. It’s essential for loan holders to review their loan agreements and seek financial advice if necessary, to navigate through these changes efficiently.


This article is for informational purposes only and does not constitute financial advice. Loan terms and conditions vary, and readers are advised to consult with financial advisors or banking professionals for specific guidance.


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