One more hit to India’s largest public sector bank State Bank of India or SBI users’ pockets, as the lender has announced a new interest rate hike will be in effect from tomorrow. Obviously, because of this, the EMIs of your loans will likely go higher, as the bank has hiked its EBLR or External Benchmark Lending Rate.
SBI Hiked EBLR
SBI has hiked EBLR by 40 basis points to 7.05 per cent while announcing a further hike in Repo-Linked Lending Rate (RLLR) taking it up to 6.65 per cent plus CRP. As per the official website of the bank, the new rates are to be in effect from June 1, 2022.
SBI’s decision has followed the efforts of the Reserve Bank of India to tame surging inflation in which the regulator has increased its repo rates by 40 bps at the beginning of this month and another hike in the key lending rates is expected in the next meeting scheduled between June 6 to 8.
Latest SBI Home Loan Interest Rates With Effect From June 1, 2022
- EBLR will be 7.05 per cent + CRP as compared to the previous 6.65 per cent.
- RLLR to be hiked to 6.65 per cent + CRP as compared to the previous 6.25 per cent.
- SBI said, “External Benchmark based Lending Rate (EBLR) = External Benchmark Rate (EBR) + Credit Risk Premium (CRP)”. It is customary for banks to add a Credit Risk Premium (CRP) over the EBLR and RLLR while providing any loans to borrowers, including home loans and car loans.”
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About External Benchmark Lending Rate or EBLR
According to SBI’s website, “EBLR stands for External Benchmark Lending Rate. SBI has adopted Repo Rate as the external benchmark to link its floating rate home loans with effect from 01.10.2019.” EBLR always fluctuates with the lending rates of RBI.
As the SBI website said, EBLR is not a home loan product, “It is a new interest rate structure. All floating rate home loans will have interest rates linked to External Benchmark.”
