BAD NEWS for Loan borrowers! SBI hikes lending rates by up to 10 bps-- Check new rates here

New Delhi: State Bank of India (SBI), a government-owned lender, increased its 1-year marginal cost of funds-based lending rate (MCLR) by up to 10 basis points (BPS), the bank stated on Friday. The new rate is now 8.4 percent. The MCLR is the lowest interest rate at which a bank will not, with some exceptions, make a loan.

Customers should expect their loans and EMIs to cost more as a result of the increase in MCLR. But keep in mind that the increase in MCLR only impacts the floating interest rate; it has no impact on the fixed interest rate. Banks increase their lending rates, or MCLR, in order to pass the cost on to their clients if the Reserve Bank of India raises the repo rate. (Also Read: Tips and Tricks: Follow THESE 5 techniques to SAVE income tax)

MCLR had already increased by the bank in December 2022. At that time, it increased MCLR from 8.05 percent to 8.30 percent for a period of six months and a year. For two years, the MCLR increased from 8.25 percent to 8.50 percent, and for three years, it increased from 8.35 percent to 8.60 percent. (Also Read: SPECIAL LIC plan for women: Invest Rs 58 per day in Aadhar Shila Yojana, get Rs 8 lakh upon maturity-- Check benefits, premium chart, calculator, and other details)