EMIs to go up as SBI hikes lending rates by 0.1%

April 20: India’s largest lender State Bank of India (SBI) has raised its marginal cost of funds based lending rate (MCLR) by 10 basis points (bps) or 0.1 per cent across all tenures This move that will lead to an increase in EMIs for borrowers. The lending rate revision by SBI is likely to be followed by other banks in the days to come. The revised MCLR rate is effective from April 15, as per the information posted on SBI website.

Most of the loans are linked to the one-year MCLR rate. At the same time, two-year MCLR increased by 0.1 per cent to 7.30 per cent, while three-year MCLR rose to 7.40 per cent. After the SBI, Kotak Mahindra, Bank of Baroda and Axis Banks are also contemplating an increase in MCLR.