Bad news for customers ahead of Diwali: Loan EMIs to get more expensive as SBI, Kotak, Federal Bank revise lending rates

New Delhi: Sate-owned SBI and private lenders Kotak Mahindra Bank and Federal Bank have revised their lending rates under marginal cost of fund based lending rate (MCLR), making consumer loans such as personal, home and auto costlier.

Country's largest lender State Bank of India (SBI) has revised the MCLR for the benchmark one-year tenor to 7.95 per cent, up by 25 basis points from previous rate. SBI said the new MCLR is effective from October 15, 2022.

The one-year tenor MCLR is the rate against which most consumer loans are tied to.

Besides, SBI has also raised the two- and three-year tenor MCLRs to 8.15 per cent and 8.25 per cent respectively, as against 7.90 per cent and 8 per cent.

The overnight, one-, three- and six-month rates have been raised in the range of 7.60-7.90 per cent.

Kotak Mahindra Bank said the MCLR for various tenors has been set in the range of 7.70-8.95 per cent with effect from October 16, 2022. Its revised one-year MCLR rate is 8.75 per cent.

South-based Federal Bank said its one-year MCLR on loans and advances has been revised to 8.70 per cent with effect from October 16.

Following RBI's repo rate hike last month, a number of banks have revised their lending rates upward.