From SBI, Axis to Kotak, banks hike lending rates: Latest rates here
1 min read . Updated: 23 Feb 2023, 05:44 PM IST
Premium- Following RBI's rate hike, several banks have increased their lending interest rates including the Marginal Cost of Funds Based Lending Rate (MCLR) and Revised Repo Based Lending Rate (RBLR)
The Reserve Bank of India (RBI) earlier this month hiked the repo rate by 25 basis points (bps) to 6.50%, the highest since 2018. It was the sixth straight hike since May 2022. This has prompted several banks to raise their lending interest rates, making loans costlier for borrowers.
Repo rate is the rate at which the RBI lends money to commercial banks. Several banks have increased their lending interest rates including the Marginal Cost of Funds Based Lending Rate (MCLR) and Revised Repo Based Lending Rate (RBLR).
Here is the list of banks that have increased their lending interest rates:
1. SBI: The country's largest lender, State Bank of India or SBI has hiked the MCLR by 10 bps across tenures, making most consumer loans such as auto or home loans costlier for borrowers. The new rates came into effect from 15 February.
2. Kotak Mahindra Bank: Following RBI's rate hike, Kotak Mahindra Bank has increased its lending rates by 5 basis points across tenures. The move will make loans costlier for customers.
3. Bank of Baroda: The public sector lender has approved the revision in MCLR by 5 bps across tenors. The new rates were effective from 12 February, 2023.
4. Axis Bank: Private lender Axis Bank has raised the MCLR by 10 bps across tenors. The new rates came into effect from 19 February, 2023.
5. RBL Bank: The private lender has hiked its marginal cost of funds-based lending rates across tenures by 20 bps. The new MCLR rates came into effect from 22 February, 2023. With a hike in MCLR rates, term loans linked to MCLR are probably going to experience an increase in interest rates.
6. Punjab National Bank: Public sector lender PNB has announced a 25 bps increase in the repo linked lending rate (RLLR) from 8.75 per cent to 9 per cent effective from 9 February, 2023.