SBI hikes benchmark lending rate by 0.2%
01 Sep 2018
State Bank of India (SBI), the country’s largest lender, has increased lending rate by 20 basis points across all tenors up to three years, making home, auto and other loans costlier.
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.
The new rates are effective from today.
The decision to hike lending rates announced today, is expected to be followed by other lenders as well.
The MCLR for a one-year tenor has increased to 8.45 per cent from 8.25 per cent earlier. Most of the retail loans are benchmarked against one-year MCLR.
The MCLR for a three-year loan 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 repo rate by 25 basis points to 6.5 per cent.
RBI had last raised the repo rate on 1 August by 0.25 per cent to 6.5 per cent.