Lending Rate State Bank of India (SBI) and other major lenders including Bank of Baroda (BoB), Axis Bank and Kotak Mahindra Bank are increasing their benchmark lending rates by up to 0.10 per cent.
This will affect the existing borrowers of these bank as their EMIs for home, car and personal loans will go up slightly.
The lending rate hike, which comes after three years, is likely to be followed by other banks.
SBI has revised its marginal cost of funding based lending rate (MCLR) by 0.10 per cent across tenors.
The bank revised the lending rate from 7 per cent to 7.10 per cent for the one-year tenure.
The revised MCLR is effective from April 15, as per information posted on SBI's website.
Bank of Baroda (BoB), Axis Bank and Kotak Mahindra Bank have also hiked the benchmark one-year MCLR by 0.05 per cent each.
Most of the consumer loans are priced against this benchmark.
After the hike, state-owned BoB's new MCLR for one year tenure stands at 7.35 per cent with effect from April 12, 2022.
However, loans taken against other benchmarks like EBLR and RLLR will continue to be static.
For effective transmission of monetary policy rates to borrowers, the RBI asked banks to shift to EBLR mechanism for pricing loans.
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