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.
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