SBI loans to get costlier as bank hikes MCLR rates by 10 bps across tenure

State bank of India

State Bank of India (SBI) has hiked its marginal cost lending rate (MCLR) by 10 basis points across tenures with effect from February 15.

According to the SBI’s website, overnight MCLR increased to 7.95 percent from 7.85 percent, and one-month and three-month MCLR rose to 8.10 percent from 8.00 percent.

While, six-month was revised to 8.40 percent from 8.30 percent, and one year was revised to 8.50 percent from 8.40 percent. Whereas, two-year and three-year MCLR was revised to 8.60 percent and 8.70 percent.

The revision in rates was just after the Reserve Bank of India (RBI) increased the repo rate by 25 basis points.

Cumulatively, the central bank hiked the repo rate by 250 basis points to tame inflation, but it still remains above the RBI's upper tolerance limit of 6 percent.

India's retail inflation in January rose to 6.52 percent. It was 5.72 percent in December.