The State Bank of India (SBI) has raised its Marginal Cost of Funds-based Lending Rate (MCLR) by 10 basis points across all tenors, making consumer loans more expensive. This marks the third consecutive MCLR hike by the bank.
Effective August 15, the benchmark one-year MCLR, which influences most consumer loans, including auto and personal loans, has increased from 8.85% to 8.95%. The two-year and three-year MCLRs are now set at 9.05% and 9.10%, respectively.
Shorter tenors have also seen a rise, with one-month, three-month, and six-month MCLRs now ranging between 8.45% and 8.85%. The overnight MCLR has been adjusted from 8.10% to 8.20%.
This rate hike follows the Reserve Bank of India’s (RBI) decision to keep its benchmark lending rate unchanged at 6.5% for the ninth consecutive time earlier this month. The increased MCLR will impact borrowers, leading to higher interest payments on loans tied to this benchmark.
(With inputs from PTI)