The State Bank of India (SBI) has raised its Marginal Cost of Funds Based Lending Rate (MCLR) by 15 basis points across five tenures, effective October 15.
The overnight and one-month rates remain unchanged.
SBI has increased the MCLR for the three-month tenure to 8.40% from 8.25%, while the six-month rate has been raised to 8.75% from 8.60%.
The one-year MCLR has increased to 8.85% from 8.70%. The rates for two-year and three-year tenures have also been raised to 8.90% and 8.95%, respectively, from 8.75% and 8.80%.
The overnight and one-month MCLR rates continue to stand at 7.85%.
| Tenure | Earlier MCLR | Revised MCLR |
|---|---|---|
| Overnight | 7.85% | 7.85% |
| One month | 7.85% | 7.85% |
| Three months | 8.25% | 8.40% |
| Six months | 8.60% | 8.75% |
| One year | 8.70% | 8.85% |
| Two years | 8.75% | 8.90% |
| Three years | 8.80% | 8.95% |
(Source: SBI website)
The revision follows the Reserve Bank of India’s (RBI) October 7 monetary policy decision, when the Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.50% and changed its stance from neutral to calibrated tightening.
MCLR is a benchmark used by banks to price certain loans. For borrowers with loans linked to MCLR, a revision in the benchmark can affect their interest rates and equated monthly instalments (EMIs), depending on the loan terms and reset date. The impact may not be immediate for all borrowers.