HomeNewsBusinessSBI hikes home loan interest rates by 10 bps

SBI hikes home loan interest rates by 10 bps

The rate hike will be effective from January 15 and follows back-to-back RBI rate hikes

January 15, 2023 / 09:43 IST
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Signage is illuminated atop a State Bank of India Ltd. (SBI) branch at night in Bengaluru, India, on Tuesday, May 7, 2019. State Bank of India, the country's largest lender by assets, posted a fourth-quarter profit that missed all analyst forecasts as provisions for bad loans rose from the previous three-month period. Photographer: Karen Dias/Bloomberg
Signage is illuminated atop a State Bank of India Ltd. (SBI) branch at night in Bengaluru, India, on Tuesday, May 7, 2019. State Bank of India, the country's largest lender by assets, posted a fourth-quarter profit that missed all analyst forecasts as provisions for bad loans rose from the previous three-month period. Photographer: Karen Dias/Bloomberg

The country's largest lender, State Bank of India (SBI), has hiked the marginal cost of funds-based lending rate (MCLR) on 1-year tenure by 10 basis points for home loans and others, with effect from 15 January.

MCLR is the minimum rate at which lending rates are calculated.

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Details on SBI website showed that the MCLR on 1-year tenure is hiked to 8.40 percent from the previous 8.30 percent. MCLR on other tenures has been kept unchanged.

Since May, RBI has hiked interest rates by 225 basis points to fight inflation. One bps is one hundredth of a percentage point.