THESE banks have raised lending rates, loan EMIs to see a hike

Written By DNA Web Team | Updated: Oct 17, 2022, 02:28 PM IST

A bank's long-term loans, such home loans, are connected to its one-year MCLR, hence it is crucial from the perspective of retail loans.

The largest lender in India, State Bank of India, or SBI, raised its MCLR, or marginal cost of funds-based lending rate, by 25 basis points (bps) for all loan tenures. According to the bank's website, the new MCLR rates go into effect on October 15, 2022. For individuals who obtained loans benchmarked by the MCLR, this will result in costlier EMIs. Given that a bank's long-term loans, such as home loans, are tied to this rate, the one-year MCLR is significant from the standpoint of retail loans.

The rate for the overnight to three-month SBI MCLR has increased from 7.35 per cent to 7.60 per cent. The SBI six-month MCLR increases from 7.65 per cent to 7.90 per cent; one year from 7.7 per cent to 7.95 per cent; two years from 7.9 per cent to 8.15 per cent; and three years from 8 per cent to 8.25 per cent.

SBI's tenor-based MCLR is in effect as of October 15th.

In the following order: Overnight 7.60 per cent, One Month 7.60 per cent, Three Months 7.60 per cent, Six Months 7.90 per cent, One Year 7.95 per cent, Two Years 8.15, per cent and Three Years 8.25 per cent.

SBI raises FD rates

With effect from October 15, SBI raised interest rates on fixed deposits under 2 crore. For deposits expiring in 7 days to 10 years, SBI is now giving an interest rate ranging from 3.00 per cent to 5.85 per cent for the general public and 3.50 per cent and 6.65 per cent for senior persons.

Federal Bank raises lending rates

With effect from October 16, Federal Bank has also increased lending rates across tenures by 25 bps. The MCLR rate for the night has increased to 8.45 per cent. One month's MCLR at Federal Bank increases to 8.50 per cent, three months to 8.55%, and six months to 8.65 per cent. The one-year MCLR, which is significant in terms of retail loans, has increased to 8.70 per cent.

One month's MCLR was 8.50 per cent, three months' MCLR was 8.55 per cent, six months' MCLR was 8.65 per cent, and one year's MCLR was 8.70 per cent.