Taking a loan just got more expensive.
For the second time in two months, State Bank of India has hiked its Marginal cost of fund-based lending rate or MCLR by 5 to 10 basis points on certain tenures.
The revised rates will make both auto and home loans more expensive and will be effective July 15th. This hike comes on the heels of a 10 basis points increase in MCLR that the bank had announced just last month in June.
Here's a break-down of the new rates across certain tenures. The MCLR for a three-month tenure has been increased by 10 basis points to 8.4%. The MCLR for six-month, one-year, and two-year tenures has been hiked by 10 basis points each, to 8.75%, 8.85%, and 8.95% respectively. For a three-year tenure, the bank has increased MCLR rates by 5 basis points to 9%.
Its not just SBI, but HDFC Bank which also recently increased its lending rates. HDFC bank has raised lending rates by upto 10 basis points for various tenures.
The new MCLR rates now range between 9.05% and 9.4%. For a one-month tenure, rates have been hiked by 10 basis points to 9.1%. For one, two and three-year tenures, MCLR rates have been revised to 9.40%.
Marginal cost of fund-based Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend.