SBI to increase interest rates from today

15 Dec 2022 , 08:40 AM

State Bank of India, the largest lender in the nation, will start revising its lending rates today. A widget on the bank’s website indicates that the new rates will take effect on December 15, 2022.

SBI decided to raise its marginal cost of funds-based lending rate (MCLR) by 25 basis points, seemingly as a result of the Reserve Bank of India’s ongoing rate hikes.

As of right now, this hike pushes the total amount to 225 basis points – including the 40-bps increase in May and the 50 bps hikes in June, August, and September – taking the benchmark rate up by 2.25% since May 2022. The RBI raised the repo rate by 35 basis points to 6.25% in its fifth consecutive rate hike earlier this year.

Borrowers’ EMI amounts would be affected by the rise in MCLR because their outlay is expected to rise.

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