Ready to hike EMIs for home, car and personal loans as leading lenders such as State Bank of India (SBI), Axis Bank, Bank of Baroda (BoB) and Kotak Mahindra Bank have increased their benchmark lending rates . State Bank of India has increased its marginal cost based lending rate (MCLR) by 10 basis points (bps), as per the data available on SBI website.
Bank of Baroda has increased its one-year MCLR by 5 bps.
private sector lender axis Bank And Kotak Mahindra Bank has also increased the one-year MCLR rates.
Banks have hiked loan rates for the first time in nearly three years. Other banks may also increase their lending rates in the coming days.
The increase in MCLR by various banks comes after a loud voice by the Reserve Bank of India (RBI) as it focused its attention on tackling inflation, supporting growth in the monetary policy review meeting earlier in the month. The six-member Monetary Policy Committee said its focus would be to take back housing.
Banks hike MCLR rates. What does this mean for customers?
The EMI linked to MCLR will increase slightly, but loans taken against other benchmarks like EBLR and RLLR will remain stable. State Bank Of IndiaThe EBLR (External Benchmark Based Lending Rate) rate of 6.65 per cent, while the repo-linked lending rate (RLLR) is 6.25 per cent, with effect from April 1.
Bank of Baroda increased MCLR
Overnight MCLR 6.50%
1 Month MCLR 6.95%
3 Month MCLR 7.10%
6 Months MCLR 7.20
1 year MCLR 7.35
Axis Bank increased MCLR
overnight 7.20%
one month 7.20%
three months 7.30%
six months 7.35%
one year 7.40%
two years 7.50%
three years 7.55%
SBI increased MCLR
overnight 6.75
one month 6.75
three months 6.75
six months 7.05
one year 7.10
two years 7.30
three years 7.40