SBI Hikes Key Lending Rate by 10 bps From Feb 15, Know how it will Impact Borrowers

New Delhi: India’s largest lender State Bank of India (SBI) has announced to increase its key lending rate by 10 basis points (bps) across tenures following the repo rate hike by Reserve Bank of India (RBI). The new rates will be effective from February 15, as per SBI’s website. The move will make most consumer loans like auto or home loans costlier for borrowers.

ALSO READ | 'The new CEO of Twitter is Amazing': Musk Unveils the new Head of Platform

The Bank is now offering 7% from 6.75% interest for FDs maturing between 2 years to less than 3 years and 6.5% from 6.25% on 3 years to less than 5 years.

The bank has also introduced a specific tenure scheme of 400 days to give its highest interest of 7.10% with effect from 15 February 2023.

Senior citizens get extra interest over normal interest for FDs on different tenures.

ALSO READ | Paytm Payments Bank Launches UPI LITE Feature

How it will impact the customers?

The marginal cost of funds-based lending rate or MCLR is the key lending rate to determine the interest rates of different types of loans. The changes in MCLR rate can have a direct impact on customers as the cost of loans and EMI go up.

RBI’s MPC has hiked the repo rate again on February 8, 2023 in an effort to rein the inflation. RBI increased the rate by 225 bps points to 6.50%.