State Bank of India (SBI), Kotak Mahindra Bank, Federal Bank have revised their lending rates under marginal cost of fund based lending rate (MCLR), making consumer loans costlier.
SBI revised the MCLR for the benchmark one-year tenor to 7.95 per cent, to be effective from October 15, 2022. The increase is by 25 basis points from the previous rate.
The MCLR has gone up from 7.35 per cent to 7.60 per cent for overnight, one-month, and three-month periods. The lending rate for six-month period has been increased from 7.65 per cent to 7.90 per cent.
MCLR (marginal cost of funds based lending rate) refers to the minimum interest rate below which banks cannot lend. The one-year tenor MCLR is the rate against which most consumer loans are tied to.
The state-owned bank also hiked the two- and three-year tenor MCLRs to 8.15 per cent and 8.25 per cent respectively. This was 7.90 per cent and 8 per cent previously.
Kotak Mahindra Bank said the MCLR for various tenors has been set in the range of 7.70-8.95 per cent. The new rates came into effect on October 16. Its revised one-year MCLR rate is 8.75 per cent.
Federal Bank said its one-year MCLR on loans and advances has been increased to 8.70 per cent with effect from October 16.
The move will make EMIs more expensive for people who have taken home, auto and personal loans.
—With PTI inputs