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