State Bank of India (SBI) has hiked its benchmark marginal cost of fund based lending rate (MCLR) by 5 to 10 basis points in majority of tenures effective Monday.
In an update on its website the country’s largest lender said MCLR on one month to three years has been hiked by 5 to 10 basis points. One basis point is 0.01 percentage point.
Following the hike, interest rates on loans linked to MCLR will likely go up by a similar quantum. The benchmark rate on one month MCLR has been hiked by 5 basis points to 8.35% while the three month MCLR has been hiked by 10 basis points to 8.40%.
Similarly MCLR rates for the six month, one year and two years tenures have been hiked by 10 basis points each to 8.75%, 8.85% and 8.95% respectively.
The three year MCLR has been hiked by 5 basis points to 9%. All the rates are effective from July 15.
This recent hike in MCLR is the second consecutive hike in rates by SBI after a 10 basis point hike announced in June.
Introduced on April 1, 2016, MCLR is the minimum interest rates below which banks cannot lend. It reflects the increase in banks’ cost of funds.
Mostly corporate loans are linked to MCLR while retail loans are mostly linked to external benchmarks like the repo which has not been changed by RBI since February 2023.
