Major banks including State Bank of India (SBI), Bank of Baroda, Axis Bank and Kotak Mahindra Bank have increased their prime lending rates by up to 0.1 per cent. Along with this, the monthly installment (EMI) of housing, car and personal loans will increase.
These banks have hiked the benchmark lending rates after nearly three years. It is believed that other banks can also take similar steps. The country’s largest bank SBI has increased the marginal cost based lending rate (MCLR) by 0.1 percent. The bank has increased the loan rate from 7 percent to 7.10 percent for a period of one year.
SBI rates effective from April 15
According to the information given on SBI’s website, the revised MCLR rate is effective from April 15. The one-day, one-month and three-month MCLR increased by 0.10 per cent to 6.75 per cent, while the six-month MCLR increased to 7.05 per cent. Most of the loans are linked to the one-year MCLR rate. Similarly, the two-year MCLR increased by 0.1 percent to 7.30 percent and the three-year MCLR increased by 0.1 percent to 7.40 percent.
New rates of Bank of Baroda effective from April 12
Bank of Baroda (BOB), Axis Bank and Kotak Mahindra Bank have also increased the principal one-year MCLR. BoB has increased the MCLR to 7.35 per cent for a period of one year, with effect from April 12.
Private sector banks also increased interest rates
Private sector Axis Bank and Kotak Mahindra Bank have also increased the MCLR to 7.40 per cent for a period of one year, with effect from April 18 and April 16, respectively. After this decision, those who have taken loan on MCLR, their EMI will increase slightly.
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However, for those who have taken loans based on other parameters, their EMIs will not be affected. SBI’s EBLR (External Standard Based Lending Rate) is 6.65 percent, while the Repo Linked Lending Rate (RLLR) is 6.25 percent. This rate is effective from April 1. Banks add credit risk premium (CRP) to EBLR and RLLR while granting any type of loan including housing and vehicle loans.