The State Bank of India today increased its benchmark lending rates or MCLR by 0.2 per cent - a move that will make home, auto and other loans costlier. The new rates are effective today.
The country's largest lender has increased the lending rate by 20 basis points across all tenors up to three years.
With this, SBI's overnight and one-month tenors' Marginal Cost of Funds Based Lending Rate (MCLR) stands at 8.1 per cent as against 7.9 per cent.
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.
The MCLR for a three-year tenor increased to 8.65 per cent from 8.45 per cent.
The rate hike by the bank comes a month after the Reserve Bank of India hiked benchmark lending rate called repo rate by 25 basis points to 6.5 per cent.
RBI had last raised the repo rate on June 6 by 0.25 per cent to 6.25 per cent.
That increase was the first since January 28, 2014 when rates were hiked by a similar proportion to 8 per cent.
(With inputs from PTI)