State Bank of Hyderabad (SBH) has introduced Marginal Cost of Funds Based Lending Rate (MCLR), as internal benchmark for lending, in place of the base rate in line with the new RBI guidelines.
Accordingly all rupee loans sanctioned and credit limit renewed with effect from April 1, 2016 will be priced with reference to MCLR. The new rates are in the range of 9.20% interest to 9.65 per cent per annum for varying periods, SBH said in a release issued here on Thursday.
The above rates would be reviewed at monthly. Under this method, interest rates on advances are computed based on the marginal cost of funds.
As per the MCLR guidelines, the existing borrowers under Base Rate/BPLR regime will also have the option to move to MCLR based dispensation before full repayment/ renewal, on mutually acceptable terms. The existing base rate is at 9.75% and BPLR is at 14.90% p.a.
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