Business

SBI Increases MCLR, Impacting Loan Rates Effective 15 July

State Bank of India (SBI), the largest lender in the country, has announced an increase in its benchmark marginal cost of lending rate (MCLR) by 5 to 10 basis points, effective 15 July.

This decision indicates a potential rise in interest rates for loans tied to the MCLR, impacting both corporate and retail borrowers who rely on this rate for their financing needs.

The bank adjusted the one-month MCLR for loans up by 5 basis points to 8.35%, while the three-month MCLR increased by 10 basis points to 8.40%.

The bank raised the rates for six-month, one-year, and two-year loans by 10 basis points each, now at 8.75%, 8.85%, and 8.95%, respectively.

Additionally, the three-year MCLR has seen a smaller increase of 5 basis points, bringing it to 9%.

This marks the second consecutive rate hike by SBI, following a similar increase of 10 basis points in June.

The MCLR sets the minimum interest rate banks charge for loans, primarily impacting corporate borrowing, while retail loans typically link to the repo rate, which the Reserve Bank of India (RBI) has kept unchanged since February 2023.

As a leading player in the banking sector, SBI’s decisions often influence other financial institutions.

Analysts expect that this latest hike may prompt other banks to adjust their MCLR rates accordingly, potentially leading to higher loan costs across the board.

Also Read: Surge In Mutual Fund Inflows Through New Fund Offers In June

Mankrit Kaur

Recent Posts

Bharat Express CMD Upendrra Rai Congratulate Devendra Fadnavis Sworning In As Maharashtra Chief Minister

Upendrra Rai, CMD Bharat Express, who expressed admiration for Shri Fadnavis' leadership and conveyed heartfelt…

16 mins ago

Maha Kumbh 2025: Yogi Government’s Strategic Coordination Ensures Timely Preparations

For Maha Kumbh 2025, preparations are in full swing as authorities work to ensure all…

13 hours ago

In Special Gesture, Kuwait’s Prime Minister Sees-Off PM Modi At Airport After Conclusion Of Historic Visit

Prime Minister Narendra Modi wrapped up his two-day visit to Kuwait on Sunday evening. In…

14 hours ago

Maha Kumbh 2025: Shri Panchdashnam Aawahan Akhara Makes Grand Entry Into Maha Kumbh City

Maha Kumbh 2025 with preparations for the Maha Sammelan are in full swing as 13…

14 hours ago

India’s Unifying Initiative: MRM Declares Bhagwat’s Message As The Foundation Of National Unity

The MRM strongly endorsed Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat’s statement on temple-mosque disputes.…

14 hours ago

Maha Kumbh-2025: Prayagraj Mela Authority Deploys Advanced Sanitation Technology

For Maha Kumbh-2025, the Prayagraj Mela Authority has made extensive preparations to provide a clean…

16 hours ago