RBI: This increase in the interest rate from the bank has been done after the Reserve Bank of India (RBI) increased the repo rate. RBI has increased the repo rate by 2.5 percent since May last year.
This decision of SBI has broken the back of the customers, for this work you will have to pay more money.
State Bank of India: If your account is in State Bank of India (SBI) or you have taken a loan from this largest public sector bank, then this news is useful for you. SBI has increased the rates of short term loans by 0.10 percent.
Here short term loan refers to loan from one day to three years. This increase in the interest rate from the bank has been done after increasing the repo rate from the Reserve Bank of India (RBI). RBI has increased the repo rate by 2.5 percent since May last year.
Full impact of repo rate hike on customers
Banks are putting full impact of this hike on customers. Now if you take a loan from the bank, then you will have to pay more interest and EMI than before. However, banks have not increased the interest rate on deposits accordingly.
In the fortnight ending January 13, 2023, the loan of banks has increased by 16.5 percent on an annual basis. On the other hand, the deposit growth has been only 10.6 percent.
According to the information given on the official website of SBI, the bank has increased the Marginal Cost of Funds Based Lending Rate (MCLR) by 0.10 percent to 7.95 percent for one day.
3 percent interest on deposits above 10 crores.
Apart from this, the MCLR (MCLR) has been increased to 8.10 percent for loans of one to three months. The interest rate on six months loan has been increased from 8.30 percent to 8.40 percent. The interest rate on one year loan has also been increased by 0.10 percent to 8.50 percent.
The interest rate for two-year loan will be 8.60 percent and the interest rate for three-year loan will be 8.70 percent. In comparison, the bank has 2.70 per cent interest on savings account with deposits below Rs 10 crore and three per cent interest on deposits above Rs 10 crore.