MUMBAI: In a setback to borrowers, many leading banks including SBI, PNB, ICICI and HDFC have raised lending rates by 10 bps. It means EMIs on home loans and auto loans will marginally increase, but further rate rises cannot be ruled out.
The move comes just days ahead of a highly-anticipated hike in RBI’s policy rate next Thursday, which in turn could further spike interest rates across all retail loans.
While SBI raised marginal cost-based lending rate (MCLR) by 10 bps with immediate effect, HDFC raised its retail prime lending rate, on which its adjustable rate home loans are benchmarked, by a similar measure effective from Saturday.
Following the increase, SBI’s one-year MCLR is currently at 8.25 per cent, while two and three-year MCLR stand at 8.35 and 8.45 per cent respectively.
PNB has raised the MCLR for three-year and five-year tenors to 8.55 per cent and 8.7 per cent, respectively. ICICI Bank too said it has raised five-year tenor MCLR by 10 bps to 8.70 per cent. It has also raised the MCLR by 10 bps in loans with tenor of one year and three years.