SBI Hikes Lending Rates By Up To 10 Basis Points

State Bank of India increased lending rates across most tenors in the range of five to 10 basis points. The revised rates will come into effect from Monday, according to a statement

SBI hiked the marginal cost of fund-based lending rate for all tenors, except overnight that was left unchanged at 8.1%. The one-month MCLR has been hiked five basis points to 8.35%. One basis point is 0.01 percentage point.

The MCLR for tenors of three months, six months, one year and two years have been increased by 10 basis points. Three-year MCLR has been hiked by five basis points.

The marginal cost of funds-based lending rate, or MCLR, is the minimum interest rate below which a bank cannot loan money to its customers. With this hike, loan interest rates will now also increase.

This is the second monthly hike in MCLR by SBI in a row, following a 10-basis-point raise in June.