MUMBAI: State Bank of India (SBI), country’s largest bank, has raised its marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps) and repo-linked lending rate by 25 bps which in turn will lead to increase in rates on consumer loans like home loans, personal loans, auto loans.The lender has also hiked interest rates by 5 bps to 25 bps on fixed deposits below Rs 2 crore with effect from Wednesday.
The MCLR is the minimum lending rate below which a bank is not allowed to lend. The lender has raised overnight MCLR rate by 10 bps to 7.95 % from 7.85 %. Rate for one month tenure has been hiked by 10 bps to 8.10 % from 8.00 %. The three-month MCLR is 8.10 %, which has been raised from 8.00 %. The six-month MCLR stands at 8.40 %, which was 8.30 % earlier.
For a one-year period, the bank said the new rate will be increased to 8.50 % against 8.40 %. For a two-year tenure, the new MCLR is 8.60 % from 8.50 %. The rate for three-year tenure has been raised to 8.70 % from 8.60 %. SBI has hiked FD rates by 25 bps on 2 years to less than 3 years tenure to 7% from the previous 6.75%. The bank has increased rates by 25 bps on deposits with tenures from 3 years to 10 years taking the rate to 6.50% from the earlier 6.25%.