Srinagar   03 March :

India’s largest lender SBI on Thursday increased marginal cost-based lending rates (MCLR) across most maturities, making home, education, and auto loans more expensive.

The bank raised the key one-year MCLR rate to 8.15% from 7.95%, effective immediately. The move could lead to other banks increasing their benchmark lending rates, reports said.

The revised one-year MCLR comes as dampener for home loan borrowers as EMIs are likely to up. Taking a cue from SBI, country’s second-largest private sector lender ICICI Bank also raised the one-year MCLR from 8.2 per cent to 8.3 per cent. The PNB, which is at the centre of Nirav Modi fraud also increased one-year MCLR to 8.3 per cent from 8.15 per cent.

In November last year, SBI had slashed its marginal cost lending rates by 5 basis points to 7.95 per cent. In home loans, one-year MCLR or the benchmark lending rate is applicable. This is the first time a bank has raised the benchmark lending rate after the MCLR system came into effect in April 2016.

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