SBI Hikes Lending Rate by 10 Basis Points, EMIs to Rise

[Mumbai, India] – [Date] – State Bank of India (SBI), India’s largest lender, has increased its marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps) across all tenures, effective from [Effective Date]. This interest rate hike will impact home loans, auto loans, and other loan products, leading to an increase in equated monthly installments (EMIs) for borrowers.

The move follows the recent Reserve Bank of India (RBI) policy meeting, where the repo rate was increased by 25 bps. This monetary tightening aims to control inflation, which has remained above the RBI’s comfort zone for several months.

The new MCLR rates for SBI are as follows:

Overnight: [New Overnight Rate]
1 month: [New 1 Month Rate]
3 months: [New 3 Month Rate]
6 months: [New 6 Month Rate]
1 year: [New 1 Year Rate]
3 years: [New 3 Year Rate]

This interest rate hike will impact existing and new borrowers. Borrowers with floating rate loans will see their EMIs increase, while new borrowers will face higher loan costs.

Impact on borrowers:

Increased EMIs: Borrowers will need to pay higher monthly installments, potentially impacting their budget.
Higher borrowing costs: New borrowers will face higher interest rates, making loan affordability more challenging.
Potential for refinancing: Existing borrowers may consider refinancing their loans to secure lower interest rates.

Financial experts advise borrowers to review their loan terms and consider their options for managing the increased EMIs.

This latest move by SBI is expected to be followed by other banks, potentially leading to a wider increase in lending rates across the Indian banking sector.