State Bank Of India’s Largest Lender India (SBI) has increased the marginal cost of lending rate (MCLR) on loans by 10 basis points with effect from Friday (July 15). The move follows a similar move by several other lenders against the backdrop of hike in the repo rate by the Reserve Bank of India (RBI) to control inflation in the country.
The MCLR hike will lead to higher loan interest rates for new and existing borrowers, including Equated Monthly Installments (EMIs) for home loans, vehicle loans or any other loan linked to this benchmark rate.
SBI’s one-year benchmark marginal cost of lending rate has increased from 7.40 per cent to 7.50 per cent, while its rates for overnight, one month and three months have been increased from 7.05 per cent to 7.15 per cent. State-owned lender’s website. The six-month MCLR has increased from 7.35 per cent to 7.45 per cent, while its two-year and three-year MCLR has increased by 10 basis points to 7.70 per cent and 7.80 per cent, respectively.
According to the lender’s website, here is SBI’s MCLR with effect from July 15, 2022:
whole night: old rates – 7.05 percent; New rate – 7.15 percent
one month: old rates – 7.05 percent; New rate – 7.15 percent
three months: old rates – 7.05 percent; New rate – 7.15 percent
six months: old rates – 7.35 percent; New rate – 7.45 percent
one year: old rates – 7.40 percent; New rate – 7.50 percent
two years: old rates – 7.60 percent; New rate – 7.70 percent
three year: old rates – 7.70 percent; New rate – 7.80 percent
SBI is increasing its MCLR on loans from April 2022. Earlier, SBI had raised the marginal cost of lending rate by 20 basis points with effect from June 15, 2022. In addition to MCLR, the lender increased its external benchmark-linked loan interest. Rates in June 2022. Its EBLR is 7.55% + CRP, while its RLLR is 7.15% + CRP.
Recently HDFC Bank and ICICI Bank have also increased their MCLR rates. HDFC Bank increased its enhanced lending rate, or MCLR, across all tenors; While ICICI Bank has increased its marginal cost of lending rate or MCLR by 20 basis points.
To control inflation, the Reserve Bank of India (RBI) raised the key repo rate by 50 basis points (bps) in early June, nearly 40 basis points after the central bank’s monetary policy committee hiked it. There was a second increase within a month. -Cycle Policy Review In May, the retail inflation rate in May stood at 7.04 per cent, which is higher than the RBI’s target of 2-6 per cent.
Subsequently, banks including ICICI Bank, State Bank of India and HDFC Bank have also increased their interest rates for both deposits and loans.
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