State Bank of India, the country’s largest lender, has raised the marginal cost of funds-based lending rate (MCLR) by 15 basis points across tenors, making most consumer loans costlier for borrowers. The revised rates come into effect from November 15, 2022. Private sector lender Kotak Mahindra Bank, on the other hand, has cut the MCLR for one tenure and raised it for the rest.
SBI’s benchmark one-year MCLR, which is used as base for fixing most of home, auto and personal loans, has been raised by 10 basis points (bps) to 8.05 per cent, as against 7.95 per cent earlier. Likewise, the two-year and three-year MCLRs have been raised by 10 basis points each to 8.25 per cent and 8.35 per cent, respectively, SBI said in a notification on its website.
Among others, one-month and three-month MCLRs have been increased by 15 basis points each to 7.75 per cent. The six-month MCLR is up by 15 basis points at 8.05 per cent while the overnight rate is higher by 10 basis points at 7.60 per cent.
Meanwhile, Kotak Mahindra Bank has revised upward its marginal cost of funds based lending rate for different tenors but reduced the benchmark one-year tenor rate by 20 basis points. The MCLR (marginal cost of funds based lending rate) linked loan rates for the benchmark one-year tenor has been cut to 8.55 per cent from 8.75 per cent.
The revised MCLR rates have come to effect from November 16, 2022, Kotak Bank said on its website. Banks review their MCLR rates on a monthly basis.
For other tenor loans ranging from overnight to three year, the revised rates are in the range of 7.80-9.05 per cent, according to Kotak. In the earlier review of MCLR rates in mid-October, Kotak Mahindra Bank had revised these rates in the range of 7.70-8.95 per cent.
The hike in MCLR by the Kotak Bank follows a rate revision by the country’s largest lender SBI which increased rates by up to 15 basis points across tenors. SBI hiked the benchmark one-year tenor MCLR to 8.05 per cent with effect from November 15, 2022 as against 7.95 per cent earlier.
Base rate of Kotak Mahindra Bank with effect from Nov 16, 2022 is at 7.40 per cent, said the lender. Also, the benchmark PLR (prime lending rate) is 16.15 per cent, it added. Base rate refers to the minimum rate below which banks are not allowed to lend.
(Inputs From PTI)
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