The country's largest lender, State Bank of India, has raised its marginal cost of funds-based lending rate by 10 basis points to 0.1 percentage points across all tenors, making most consumer loans costlier.
This is the third consecutive instance of raising the MCLR by the bank.
State Bank of India, the country's biggest lender, increased its marginal cost of funds-based lending rate by 10 basis points to 0.1 percentage points across all tenors, making most consumer loans costlier.
This is the third straight instance of the bank increasing its MCLR.
The one-year MCLR now stands at 8.95 per cent, against 8.85 per cent earlier, which decides almost entirely the interest rate for most consumer loans barring housing loans and other fixed-tenure loans like auto and personal loans.
The three-year MCLR is at 9.10 per cent, while two years at 9.05 per cent, both of them going up by 10 bps.
The rates for all shorter tenors—overnight, one-month, three-month, and six-month—have been reset at 8.45%-8.85%. The overnight MCLR has been reset at 8.20% as against 8.10%.
These would be applicable from August 15, 2024.
The move follows the Reserve Bank of India's decision to hold its benchmark interest rate unchanged for the ninth time in a row at 6.5% earlier this month.
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