Wednesday, Sep 28, 2022
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State Bank of India Hikes Interest Rates On Loans; EMIs Set To Go Up

SBI has increased overnight MCLR interest rate from 7.15 per cent to 7.35 per cent according to information on its website

SBI increased MCLR by 20 basis points across tenors
SBI increased MCLR by 20 basis points across tenors File Photo

The country's largest lender State Bank of India undertook second interest rate hike on loans within a month on Monday, according to information its website sbi.co.in. SBI has increased Marginal Cost Of Funds Based Lending Rate (MCLR) by 20 basis points across tenors and with the latest hike equated monthly instalments (EMIs) for borrowers is set to go up.

SBI has increased overnight MCLR interest rate from 7.15 per cent to 7.35 per cent according to information on its website. Likewise, interest on one month and two months has been increased to 7.35 per cent. Six month MCLR has been hiked to 7.65 per cent from 7.45 per cent, one year interest rate has been increased to 7.7 per cent from 7.5 per cent, two years interest rate has been revised to 7.9 per cent and three years rate has been advanced to 8 per cent.

Here are the latest SBI MCLR based interest rates:

Tenor Existing MCLR (In %) Revised MCLR (In %)
Over night 7.15 7.35
One Month 7.15 7.35
Three Months 7.15 7.35
Six Months 7.45 7.65
One Year 7.50 7.70
Two Years 7.70 7.90
Three Years 7.80 8.00
Source: SBI    

Last month, SBI increased MCLR across tenors by 10 basis points. SBI increased overnight MCLR based interest rate by 10 basis points to 7.15 per cent from 7.05 per cent with effect from July 15. One year MCLR rate was increased to 7.5 per cent from 7.4 per cent. Likewise, two years and three years MCLR rate was increased to 7.7 per cent and 7.8 per cent each respectively.

Also Read: HDFC, ICICI Bank, Indiabulls Housing, Bank of India Raise Loan Interest Rates

The upward revision of interest rate on loans comes after the Reserve Bank of India (RBI) increased repo rate by 50 basis points earlier this month to control spiralling inflation which has been above its tolerance level.

The RBI on August 5 raised the key repo rate by 50 basis points to 5.40 per cent in order to tame inflation.

With this development, the benchmark lending rate has crossed the pre-pandemic level of 5.15 per cent. 

Notably the RBI MPC raised the key repo rates by 40 basis points and 50 basis points in May and June this year, respectively. Meanwhile, the experts were anticipating a rate hike by 25 basis points to 35 basis points.
 

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