Are you moving your SBI Maxgain from Base Rate to MCLR++

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Harsh Jain

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Jan 10, 2017, 3:50:03 AM1/10/17

to DDA 2010 - 2014

Hi Friends,

long time! hope you are all well!

So have you guys already moved to the MCLR from the Base Rate regime?

Is the process same? Going to RACPC & submit a cheque for processing fee of 0.58% (0.5% + 15% S.T.) of drawing power or is it possible to do it via Netbanking?

Currently my interest rate is 9.25% (Base Rate) + 0.4% Margin = 9.65%

Changing to MCLR will be 8% (MCLR 1 Year) + 0.8% Margin = 8.8% + 0.58% (One time Processing Fee) = 9.38%

While it does seem a no brainer to me, some points to ponder are:

*the MCLR is spread over 1 year i.e. even if the MCLR goes further down, my interest rate would be reset only in Jan 2018.

*high margin of 0.8% at mclr vis-a-vis 0.4% at base rate.

My inclination is SBI would again take out an offer to reduce the high margin of 0.65% to something lower & then again charge a processing fee of 0.58%

After this, they may come out with another offer to reduce MCLR reset date from 1 year to say 3months & ask for a further processing fee of 0.58%