State Bank of India hikes Lending Rate For first time since April 2016, EMIs to become costlier

The country's largest public sector bank State Bank of India on Thursday increased marginal cost-based lending rates (MCLR) across most maturities, effective immediately. 

SBI raised the key one-year MCLR or benchmark rate to 8.15 per cent from 7.95 per cent, according to a notification from the bank. This is the first time SBI has raised the one-year MCLR or benchmark rate since the inception of a new lending rate system in April 2016.

The increase in the lending rates comes after a day after the apex bank revised the bulk deposit rates for all maturities.

For retail deposits, below Rs 1 crore, rates have been increased by up to 0.50 per cent. For deposits maturing in one year to less than two years, rates have been raised by 0.15 per cent to 6.40 per cent from 6.25 per cent earlier.

The retail deposit rates for two years to up to 10 years have been changed by 0.50 per cent to 6.50 per cent from 6 per cent. The lender revised its bulk term deposit rates for the third time in as many months.

For Rs 1 crore to Rs 10 crore bulk deposits, maturing in one year to less than two years, the bank raised rates by 0.50 per cent from 6.25 per cent to 6.75 per cent.

For deposits maturing in two to less than three years, the rates have been increased by 0.75 per cent to 6.75 per cent. For above Rs 10 crore bulk deposits maturing between one year to less than two years, the rates have been raised by 0.50 per cent to 6.75 per cent.

Rates for bulk deposits maturing between two to less than three years is increased by 0.75 per cent to 6.75 per cent.