ADVERTISEMENT

SBI Hikes MCLR By 25 Basis Points Across Tenors

The revised rates, tracking a 35-basis-point increase in the repo rate, will be effective Dec. 15.

<div class="paragraphs"><p>SBI branch in Mumbai. (Source: Vijay Sartape/BQ Prime)</p></div>
SBI branch in Mumbai. (Source: Vijay Sartape/BQ Prime)

The State Bank of India will hike the Marginal Cost of Funds-based Lending Rate by 25 basis points across tenors.

The revised rates will be effective from Dec. 15, according to the notification on the bank's website.

The decision comes after the Reserve Bank of India hiked the benchmark repo rate by 35 basis points, to the highest since February 2019, as it continues efforts to quell inflation in the economy amid resilient economic activity.

The benchmark one-year MCLR—which is used as a base for fixing most of home, auto and personal loans—has been raised to 8.3%, as against 8.05% earlier.

The two-year and three-year rates have also been hiked to 8.5% and 8.6%, respectively.

The six-month MCLR is up to 8.3%, while one-month and three-month rates have been raised to 8%.

The overnight MCLR rate will be hiked to 7.85%.