SBI gave a blow
On Monday, SBI increased the interest rates linked to the internal benchmark by 0.10 percent. From April 15, SBI increased the interest rates by 0.10 percent. With this decision of SBI, home loans, auto loans have all become expensive. After SBI, now the big private sector bank Axis Bank has also increased its interest rates by 0.05 percent. That is, now taking loan from Axis Bank has also become expensive.
Axis Bank also increased interest
Private sector Axis Bank has also made its loans expensive. The bank has increased the MCLR by 0.05 percent. The bank has implemented the new rates from April 18. With this decision of the bank, home loans, car loans have all become expensive, although it will not make any difference to those loans or loans which are linked to external benchmark or repo rate. Let us tell you that MCLR fixes interest rates on the basis of internal expenses and costs of any bank. At the same time, there is no change in the loan linked to the repo rate until the RBI changes the repo rate.
EMI burden will increase
If you have taken a loan linked to MCLR rate by SBI, then you will now have to take more loan than before. For example, if you take a loan of 20 lakhs from SBI for 20 years, then you will have to pay an EMI of Rs 15506 at the rate of 7 percent interest. Now the interest rate has increased by 0.10 percent. In such a situation, now you will have to pay EMI of Rs 15626 at the rate of 7.10 percent. That is, you will have to pay more EMI by Rs 1440 every year.