SBI increases lending rates by 10bps from today; check details

The State Bank of India has increased marginal cost of lending rate (MCLR) on loans by 10 bps, effective from Friday. The rates for all tenors increased by 10 bps. 

MCLR is the minimum lending rate below which banks are not permitted to lend. The Reserve Bank of India implemented MCLR in 2016 to determine rates of interests for loans. MCLR is different for different tenors. 

An increase in MCLR indicates an increase in loan rates including for home, personal, and cars. EMIs will also get more expensive. 

SBI MCLR

According to the SBI website, the rates for overnight, one month and three month tenors increased from 7.05 per cent to 7.15 per cent. 

Rate for six-month tenor increased from 7.35 per cent to 7.45 per cent, while it increased from 7.40 per cent to 7.50 per cent for the one-year tenor. 

For two-years and three-years tenors, the rates increased from 7.60 per cent and 7.70 per cent to 7.70 per cent and 7.80 per cent respectively. 

The lender had increased its MCLR by 20 bps in June after the RBI monetary policy committee increased the repo rate by 50 bps to 4.90 per cent. 

After the RBI increased the rate, lenders including ICICI Bank, HDFC Bank, Bank of Baroda, Union Bank of India etc increased their MCLR. The RBI is expected to hike interest rates in the following few policy meetings in order to tame inflation. 

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