Mumbai: The largest public sector bank in the country, State Bank of India has increased the marginal cost of funds-based lending rate (MCLR) by 25 basis points across all tenors. Because of the MCLR hike, the loan EMI will increase further. The new interest rates will be effective from 15 December, 2022.
The MCLR for one-month, and three-month tenures has been raised from 7.75% to 8.00%. And the lending rate for six-month and one-year tenures has been raised from 8.05% to 8.30%. The MCLR for two-year tenure has risen from 8.25% to 8.50% whereas the MCLR for three-year tenure has been hiked from 8.35% to 8.60%.
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MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan.
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