The largest lender in the nation, State Bank of India, has decided to increase the MCLR on loans by 10 basis points, or 0.10 percent, beginning on July 15, 2022.

SBI Hikes Lending Rates

According to a notification posted on the State Bank of India website on Thursday, the bank has decided to raise the MCLR for loans with a one-year tenor from the existing 7.40% to 7.50%.

The MCLR for the six-month tenor will hike from 7.35 percent to 7.45 percent.

From 7.60% to 7.70% will be added to the MCLR for the two-year duration. It will be hiked from 7.7 to 7.8 percent for a three-year term.

A week after the six-member monetary policy committee hiked the repo rate by 50 basis points (bps) to 4.90 percent in June, SBI hiked its MCLR by 20 bps.

With effect from July 15, State Bank of India (SBI) hiked its marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps).

Currently, the MCLR for the overnight, one-month, and three phases is 7.15 percent.

The six-month MCLR is 7.45 percent; the one-year, two-year, and three-year MCLRs are each 7.50 percent; and the three-year MCLR is 7.80 percent.