SBI increases benchmark on lending rates by 0.2%

Home, auto, and other loans would become costlier as the country's largest lender SBI Saturday increased its benchmark lending rates or MCLR by 0.2 percent, a development followed by other lenders.

The new rates are effective from today.

State Bank of India (SBI) has increased the lending rate by 20 basis points across all tenors up to three years.

Now SBI's overnight and one-month tenors' Marginal Cost of Funds Based Lending Rate (MCLR) stands at 8.1 percent as against 7.9 per cent, as per the SBI's website.

The MCLR for a one-year tenor increased to 8.45 percent from 8.25 percent earlier. Most of the retail loans are benchmarked against one-year MCLR.

The MCLR for a three-year tenor increased to 8.65 percent from 8.45 percent.

The rate hike by bank comes a month after the Reserve Bank of India (RBI) hiked benchmark lending rate called repo rate by 25 basis points to 6.5 percent.

RBI had last raised the repo rate on June 6 by 0.25 percent to 6.25 percent. That increase was the first since January 28, 2014, when rates were hiked by a similar proportion to 8 percent.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)