SBI home, car loan borrowers alert! EMIs to go up as bank hikes lending rates from today, July 15

With the increase, EMIs will go up for those SBI borrowers who have availed loans on MCLR, not for those, whose loans are linked to other benchmarks. Most of the loans are linked to the one-year MCLR rate.

New Delhi: In a move that will lead to an increase in EMIs for borrowers, the country's largest bank State Bank of India (SBI) has hiked its Marginal Cost Of Funds Based Lending Rate (MCLR) with 10 basis points. The revised MCLR will be effective from 15th July, 2022, SBI has said in its website.

SBI has mentioned that it has raised its MCLR by 10 basis points (bps) or 0.1 per cent across all tenures, as per the information posted on SBI website. 

SBI Marginal Cost Of Funds Based Lending Rate (MCLR) With Effect From - 15.07.2022. Tenor-wise MCLR effective from 15th July, 2022 is as under:

Tenor Existing MCLR (In percentage)

Over night 7.05
One Month 7.05
Three Month 7.05
Six Month 7.35
One Year 7.40
Two Years 7.60
Three Years 7.70

Revised MCLR (In percentage) With Effect From - 15.07.2022

Over night: 7.15
One Month: 7.15
Three Month: 7.15
Six Month: 7.45
One Year: 7.50
Two Years: 7.70
Three Years: 7.80

With the increase, EMIs will go up for those borrowers who have availed loans on MCLR, not for those, whose loans are linked to other benchmarks. Most of the loans are linked to the one-year MCLR rate.

What is Marginal Cost Of Funds Based Lending Rate (MCLR)?

Since April 2016, RBI has put in place MCLR for bank lending. Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend to borrowers.