SBI hikes MCLR-based interest rates, makes retail loans costlier
16 Dec 2023
The State Bank of India (SBI) on Friday announced a 5-10 basis points increase in its marginal cost of fund-based lending rate (MCLR) for select tenors.
While the overnight MCLR rate has been set at 8 per cent, the rates for one-month and three-month tenors have been raised to 8.20 per cent from 8.15 per cent.
As per SBI's website, the MCLR for one month has been hiked from 8.15 per cent to 8.20 per cent. Its three-month MCLR has been increased from 8.15 per cent to 8.20 per cent. The bank hiked its six-month MCLR from 8.45 per cent to 8.55 percent, and its one-year MCLR was hiked from 8.55 per cent to 8.65 per cent.
SBI increased its two-year MCLR from 8.65 per cent to 8.75 per cent while the bank's three-year MCLR has been increased from 8.75 per cent to 8.85 per cent.
The hike in MCLR rate will make retail loans such as auto, home and personal loans costlier for borrowers and increase the monthly installments. The increase in the MCLR will result in raising SBI’s lending rate to 8-8.85 per cent.
The new rates are effective 15 December 2023 and will apply to all borrowers – new as well as existing.
MCLR is the minimum interest rate below which financial institutions cannot lend, except in cases of discounted lending rates.