Mumbai: The country’s largest lender State Bank of India (SBI) has increased its benchmark marginal cost of lending rate (MCLR) from 0.05 percent to 0.10 percent from Monday.
This move of the bank will also increase the interest rates of MCLR based loans. MCLR on one month loan has increased by 0.05 percent to 8.35 percent. On three month term loan, it is at 8.40 percent with an increase of 0.10 percent.
MCLR for six month, one year and two year loan has been increased by 0.10 percent to 8.75 percent, 8.85 percent and 8.95 percent respectively. MCLR for three-year loan has increased by 0.05 percent and it will now be 9 percent.
Earlier in June also, SBI had increased MCLR by 0.10 percent. MCLR is the minimum interest rate below which the bank cannot give loan. Most corporate loans are based on MCLR while retail loans are based on repo rate. Reserve Bank of India has not made any change in repo rate since February this year. Generally other banks follow SBI in terms of interest rates. Due to this, now the loans of other banks are also likely to become expensive.
