State Bank of India, the country's largest lender, on Thursday increased Marginal Cost Of Funds Based Lending Rate (MCLR) by 10 basis points or 0.1 per cent making loans costlier. With the increase, EMIs will go up for those borrowers who have availed loans on MCLR, not for those, whose loans are linked to other benchmarks.
SBI has increased overnight MCLR based interest rate by 10 basis points to 7.15 per cent from 7.05 per cent with effect from July 15, the bank said on its website. One year MCLR rate has been increased to 7.5 per cent from 7.4 per cent. Likewise, two years and three years MCLR rate has been increased to 7.7 per cent and 7.8 per cent each respectively.
|Tenor||Existing MCLR (In %)||Revised MCLR (In %)|
Last month, SBI had increased interest rates on fixed deposits following two successive repo rate hikes by the Reserve Bank of India (RBI) in May and June. The RBI had raised the repo rate by 0.50 per cent following its monetary policy meeting on June 8, taking the overall increase to 0.9 per cent less than two months to control spiralling inflation.
Earlier this month, SBI had frozen many bank accounts of customers for non-compliance with KYC (Know Your Customer) norms