SBI Hikes Lending Rates for Third Time in a Row

State Bank of India, the nation's largest bank, has increased its Marginal Cost of Funds-based Lending Rate (MCLR) by 10 basis points across tenors, resulting in higher consumer loan costs. This marks the third consecutive hike, with the new rates effective from August 15, 2024.

State Bank of India, the country's biggest lender, has raised the Marginal Cost of Funds-based Lending Rate (MCLR) by 10 basis points (0.1 percentage point), across tenors, making most consumer loans costlier.

This is the third time in a row that the bank has increased MCLR. The benchmark one-year tenor MCLR, which is used to price most consumer loans such as auto and personal, is now pegged higher at 8.95 per cent against the earlier rate of 8.85 per cent, according to the information posted on its website.

The three-year MCLR is 9.10 per cent, while the two-year is now 9.05 per cent, up 10 basis points. Among others, the rates of one-month, three-month and six-month tenors are in the range of 8.45-8.85 per cent. The MCLR on overnight tenor will be 8.20 per cent against 8.10 per cent.

The new rates are effective from August 15, 2024, it said. The rate hike has come days after RBI kept its benchmark lending rate unchanged at 6.5 per cent for the ninth consecutive time earlier this month.

(With inputs from agencies.)