Home, auto and other loans would become costlier as the country's largest leading lenders SBI and ICICI banks on Saturday increased their benchmark lending rates or MCLR by up to 0.2 percent. The new rates will be effective from Saturday.
The country's largest lender State Bank of India (SBI) has increased the lending rate by 20 basis points across all tenors up to three years.
Now SBI's overnight and one-month tenors' Marginal Cost of Funds Based Lending Rate (MCLR) stands at 8.1 percent as against 7.9 percent, as per the SBI's website.
The MCLR for a one-year tenor increased to 8.45 percent from 8.25 percent earlier. Most of the retail loans are benchmarked against one-year MCLR.
In case of ICICI Bank, the one-year MCLR was increased by 0.15 percent to 8.55 percent, the bank statement said.
The MCLR for a three-year tenor of SBI increased to 8.65 percent from 8.45 percent.
Both the banks had last revised their MCLR in June, just before the second bi-monthly monetary policy review.
The rate hike by the banks comes a month after the Reserve Bank of India (RBI) hiked benchmark lending rate called repo rate by 25 basis points to 6.5 percent.
The RBI had last raised the repo rate on 6 June by 0.25 percent to 6.25 percent. That increase was the first since 28 January 2014, when rates were hiked by a similar proportion to 8 percent.
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