Bank borrowings those include auto loans, home loans and other loans like business and retail would become more expensive and costlier. The reason behind this is, the biggest and the leading money lenders ICICI and SBI banks have increased their benchmark leading rates or the MCLR by 0.2 per cent. The new rates have been imposed from Saturday i.e. 1st of September.
The largest money lender of our country SBI has increased the lending rate by 20 basis points across all the tenors up to three years. The State Bank of India’s meteoric and one month intent Marginal Cost of Funds Based Lending Rate stands at 8.1 percent as against 7.9 per cent, as per the SBI’s website.
The MCLR for a one-year tenor increased to 8.45 per cent from 8.25 per cent earlier. Most of the retail loans are benchmarked against one-year MCLR. In case of ICICI Bank, the one-year MCLR was increased by 0.15 per cent to 8.55 per cent, the bank statement said. The MCLR for a three-year tenor of SBI increased to 8.65 per cent from 8.45 per cent.
ALSO READ: Have You Missed The Income Tax Return Filling Deadline? What To Do Now?
Both the banks had last revised their MCLR in June, just before the second bi-monthly monetary policy review. The rate hike by bank comes a month after the Reserve Bank of India (RBI) hiked benchmark lending rate called repo rate by 25 basis points to 6.5 per cent.
Previously, RBI had raised the rate on 6th June by 0.25 per cent. The increase first took place on 28th January 2014 when the rates were increased in the same way to 8 per cent.
ALSO READ: India’s Largest Telecom Company Vodafone India Would Beat Airtel And Jio
