SBI MCLR Rate
MCLR is defined as the minimum rate of interest benchmarked by the bank below which the bank cannot lend to the customers.
Marginal Cost of Funds based Lending Rate (MCLR) is defined as the minimum rate of interest benchmarked by the bank below which the bank cannot lend to the customers. The previous base rate system was replaced by the MCLR in determining commercial banks' lending rates.
On 1 April 2016, the Reserve Bank of India (RBI) introduced MCLR to determine loan interest rates. Continue reading to learn about the State Bank of India (SBI) MCLR.
Current SBI MCLR Rate
Tenor | SBI MCLR Rates |
Overnight | 7.90% |
One Month | 7.90% |
Three Month | 8.30% |
Six Month | 8.65% |
One Year | 8.75% |
Two Years | 8.80% |
Three Years | 8.90% |
Note: The above-mentioned interest rates are effective from September 2025.
How Does the Revised MCLR Affect Existing Borrowers?
As house loan interest rates are tied to the MCLR, new borrowers will be required to pay the new rate, but existing borrowers will be able to keep their current rate until the reset clause is stated. The bank resets the rate of interest on most MCLR-linked house loans only every 6-12 months, depending per the agreement between the bank and the consumer. The rate of interest linked with the new MCLR becomes the new rate once the reset clause is invoked. The revised rate will serve as the standard for calculating future Equated Monthly Instalments (EMI) for existing borrowers. However, to lessen the burden of interest, frequent partial prepayments might be made.
How Do You Switch from SBI Base Rate to MCLR?
Switching to a MCLR to a base rate system primarily involves two steps.
- Giving a written request to the bank to link your loan with MCLR as opposed to the base rate system.
- After linking your loan to MCLR, request the bank to decrease the 'quantum of spread'. This will attract a processing fee, and after the fee has been paid, your rate of interest will be revised as per the MCLR scheme.
SBI MCLR Base Rate History
Revised Date | Overnight MCLR | 3month MCLR | 1year MCLR | 3year MCLR |
15 July 2025 | 7.95% | 8.35% | 8.80% | 8.90% |
15 June 2025 | 8.20% | 8.55% | 9.00% | 9.10% |
15 May 2025 | 8.20% | 8.55% | 9.00% | 9.10% |
15 April 2025 | 8.20% | 8.55% | 9.00% | 9.10% |
15 March 2025 | 8.20% | 8.55% | 9.00% | 9.10% |
15 February 2025 | 8.20% | 8.55% | 9.00% | 9.10% |
15 January 2025 | 8.20% | 8.55% | 9.00% | 9.10% |
15 December 2024 | 8.20% | 8.55% | 9.00% | 9.10% |
15 November 2024 | 8.20% | 8.55% | 9.00% | 9.10% |
15 October 2024 | 8.20% | 8.50% | 8.95% | 9.10% |
15 September 2024 | 8.20% | 8.50% | 8.95% | 9.10% |
15 August 2024 | 8.20% | 8.50% | 8.95% | 9.10% |
15 July 2024 | 8.10% | 8.40% | 8.85% | 9.00% |
15 June 2024 | 8.10% | 8.30% | 8.75% | 8.95% |
15 May 2024 | 8.00% | 8.20% | 8.65% | 8.85% |
15 April 2024 | 8.00% | 8.20% | 8.65% | 8.85% |
15 March 2024 | 8.00% | 8.20% | 8.65% | 8.85% |
15 February 2024 | 8.00% | 8.20% | 8.65% | 8.85% |
15 January 2024 | 8.00% | 8.20% | 8.65% | 8.85% |
15 December 2023 | 8.00% | 8.20% | 8.65% | 8.85% |
15 November 2023 | 8.00% | 8.15% | 8.55% | 8.75% |
15 October 2023 | 8.00% | 8.15% | 8.55% | 8.75% |
15 September 2023 | 8.00% | 8.15% | 8.55% | 8.75% |
15 August 2023 | 8.00% | 8.15% | 8.55% | 8.75% |
15 July 2023 | 8.00% | 8.15% | 8.55% | 8.75% |
15 June 2023 | 7.95% | 8.10% | 8.50% | 8.70% |
15 May 2023 | 7.95% | 8.10% | 8.50% | 8.70% |
15 April 2023 | 7.95% | 8.10% | 8.50% | 8.70% |
15 March 2023 | 7.95% | 8.10% | 8.50% | 8.70% |
FAQs on SBI MCLR Rates
- What is the SBI MCLR currently?
Currently, the SBI MCLR ranges from 7.90% to 8.85%.
- Does the RBI decide the MCLR?
No, the lowest interest rate at which a bank can lend is known as the MCLR. Because MCLR is a tenure-linked internal benchmark, banks set the rate internally based on how long the loan has to be repaid.
- When must MCLR disclosures be made?
Banks are required to review and publish their MCLR at least once every month according to the RBI guidelines.
- Does MCLR vary depending on the bank?
Yes, MCLR varies depending on the bank. Different lending rates are produced by each bank's calculation of its MCLR, which depends on its operating costs, marginal cost of funds, and other factors. To obtain the best loan offers, borrowers must compare the MCLR rates offered by various banks.
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