State Bank of India has raised its marginal cost of lending rate (MCLR) on loans by 20 basis points. The higher MCLR is effective from August 15, 2022. (One basis point is equivalent to a hundredth of a percentage point.) Loans linked to an external benchmark (EBLR) and repo linked (RLLR) have also been hiked, according to the website.

According to the notice on the State Bank website, the one-year MCLR rate has increased from 7.50 percent to 7.70 percent. The rates for overnight, one month and three months have been increased from 7.15 percent to 7.35 percent.

MCLR for a six-month term has been increased from 7.45 percent to 7.65 percent, rates for the two-year and three-year MCLR have been hiked to 7.90 percent and 8 percent, respectively.

EBLR

SBI has hiked external benchmark-based lending rate with effect from 15th August 2022. The rates have been hiked to 8.05%+CRP+BSP from 7.55%+CRP+BSP.

EBLR is a combination of repo rate plus a spread plus a credit risk premium which is based on your credit score.

The banks repo linked lending rate (RLLR) is hiked to 7.65%+CRP from 7.15%+CRP.

RBI hikes repo rates

In its policy review, the Reserve Bank of India hiked the key policy rate, the repo rate, by half a percentage. This is the RBI’s third consecutive hike since raising interest rates earlier this year.

Many banks including

, , , have already hiked their marginal cost of lending rate soon after the RBI repo rate hike.