Home, auto loans to get costlier as SBI hikes lending rate by 0.2%

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 (Marginal cost lending rate) by 0.2%, a development followed by other lenders.

The new rates are effective from Saturday.

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' MCLR stands at 8.1% as against 7.9%, as per the SBI's website.

The MCLR for a one-year tenor increased to 8.45% from 8.25% earlier. Most of the retail loans are benchmarked against one-year MCLR.

The MCLR for a three-year tenor increased to 8.65% from 8.45%.

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%.

RBI had last raised the repo rate on June 6 by 0.25% to 6.25%. That increase was the first since January 28, 2014 when rates were hiked by a similar proportion to 8%.

 

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PTI