CHENNAI: The State Bank of India on Wednesday hiked interest rate on loans by 0.1%. This new rate is effective from February 15.
According to a press release issued by the bank:
Marginal Cost of Funds Based Lending Rate (MCLR) offered by banks have been revised up to 10 basis points (0.1 per cent) based on tenors.
Most consumer loans like auto, home and personal are based on MCLR. The minimum loan interest rate has been increased from 7.85 per cent to 7.95 per cent.
While Bank of Baroda, Bank of India and Punjab National Bank have hiked the loan interest rate, due to rise in MCLR, the EMI amount for borrowers against it is likely to increase.
The RBI has hiked the repo rate for the sixth time since May last year. The repo rate increased by a total of 250 basis points during this period.
In response to the recent increase in the repo rate by the Reserve Bank of India to curb inflation, banks have also increased interest rates on their loans.
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