Mumbai: The largest nationalized bank in the country, State Bank of India (SBI) has hiked its lending rates. SBI hiked its marginal cost of funds based lending rate by 10 basis points or 0.1%. This is the second hike in a month. SBI has hiked the rate by 0.2% with the two consecutive increases.
SBI’s one-year MCLR was raised to 7.20% on May 15 from 7.10%. The MCLR has been raised to 7.40% for the next two years and to 7.50% for the next three years. The six-month MCLR has been increased to 7.15%. The MCLR is now 6.85% for three months, one month, and overnight tenures.
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SBI took this decision as the Reserve Bank hiked the repo rate earlier this month. RBI hiked the repo rate by 0.40% to 4.40%. Repo rate is the at which the RBI lends money to banks in the country.
With the increase, EMIs will go up for those borrowers who have availed loans on MCLR (Marginal Cost of Funds based Lending Rate. SBI’s External Benchmark based Lending Rate (EBLR) is 6.65%, while the Repo-Linked Lending Rate (RLLR) is 6.25%.
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