New Delhi: Home, auto, and other loans would become costlier as the country’s largest lender SBI Saturday increased its benchmark lending rates or MCLR by 0.2%, a development followed by other lenders. The new rates are effective from today.
State Bank of India (SBI) has increased the lending rate by 20 basis points across all tenors up to three years.
Now SBI’s overnight and one-month tenors’ Marginal Cost of Funds Based Lending Rate (MCLR) stands at 8.1% as against 7.9%, as per the SBI’s website.
The MCLR for a one-year tenor increased to 8.45% from 8.25% earlier. Most of the retail loans are benchmarked against one-year MCLR.
The MCLR for a three-year tenor increased to 8.65% from 8.45%.
The rate hike by bank comes a month after the Reserve Bank of India (RBI) hiked benchmark lending rate called repo rate by 25 basis points to 6.5%.
RBI had last raised the repo rate on June 6 by 0.25% to 6.25%. That increase was the first since 28 January 2014 when rates were hiked by a similar proportion to 8%.
