The MCLR for a three-year tenor increased to 8.65 per cent from 8.45 per cent.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 per cent, 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 per cent as against 7.9 per cent, as per the SBI's website.Tenor-wise MCLR effective from September 1, 2018:TenorExisting MCLR (In %)Revised MCLR (In %)Over night7.98.1One Month7.98.1Three Month7.958.15Six Month8.18.3One Year8.258.45Two Years8.358.55Three Years8.458.65(Source:sbi.co.in)The MCLR for a one-year tenor increased to 8.45 per cent from 8.25 per cent earlier.
Most of the retail loans are bench marked against one-year MCLR.
The MCLR for a three-year tenor 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 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.